Growth in house prices has slowed in recent months. The RP Data-Rismark capital cities home value index rose 0.6% in May from April, a pace well down on that seen at the start of 2010.
Outside of the capital cities, house prices fell 0.9% in May. RP, said it was the second successive month showing slowing price growth, suggesting the housing sector is in transition. Also, the Housing Industry Association reported new home sales fell 6.4% in May from April, more evidence that demand has weakened sharply.
In the month of May 2010, detached new home sales increased by 13.6% in NSW and by 2.1% in SA. Sales fell by 8.5% in Victoria, 12.3% in Queensland, and 10.7% in WA, the HIA said.