House values were flat across Australia in September, the start to a normally high value and high volume spring selling season.
Sydney is the stand out with a 4.1% rise for the quarter to the end of September. This translates to an 18.9% return over the last year.
However, the market overall recorded just a 0.1% rise in values in September, according to the RP Data CoreLogic Home Value Index.
This means there was a a 2.9% capital gain over the third quarter of 2014.
The flat result for September masks the fact that five of Australia’s capital cities recorded a fall in values over the month while only Sydney (+0.8%), Brisbane (+0.7%) and Adelaide (+0.9%) had increases.
Tim Lawless, the P Data national research director, says this was once again driven by exceptionally strong conditions across the Sydney and Melbourne markets.
Adelaide posted a 3.1% capital gain.
Brisbane (+0.6%), Darwin (+1.4%) and Canberra (+1.4%) also showed a capital gain over the most recent quarter.
Perth (-0.6%) and Hobart (-1.0%) were the only two capital city markets to record a decline over the September quarter.
Dwelling values are now 9.3 per cent higher over the twelve months to the end of September 2014, with every capital city recording an increase in values.
Despite the ease in capital gains over September, other indicators remained strong over the first month of spring.
Auction clearance rates continued to beat the 70% mark week-to-week while volumes across RP Data real estate agent and valuation platforms remain strong, indicating heightened levels of industry and mortgage market activity.