The residential sector has built enough momentum to continue through 2014. House prices for the first month of the year continue to grow, with the eight capital cities recording a 1.2% increase.
Melbourne was ahead of Sydney, finishing at a 3.2% increase in value. Sydney recorded a 0.8% increase. Sydney’s median home values now stand at $660,000, with Melbourne right behind at $553,000. These 2 capital cities were the key drivers in home prices, with Sydney and Melbourne finishing at 13.4% and 11.9% respectively in capital gains for 2013.
Despite the recent reports, analysts forecast these 2 capital cities to grow moderately as they have already peaked in the growth cycle. Although the growth in the residential sector is forecasted to slow down in the coming months, other capital cities with lower median values are expected to benefit as home credit is still stronger than ever.
Read more about this on the Sydney Morning Herald website.