House prices begin to slow

The Real Estate Institute of Australia survey of house prices in the June quarter shows that prices in capital cities kept rising, albeit at a slower pace. Only Melbourne and Sydney recorded larger annual increases in the quarter, while annual growth in all other capital cities slowed.

The median Sydney house price rose in the year to June by 22.8 per cent, from 16.3 per cent in the March quarter, to $388,000. In Melbourne the median price rose to $327,500, a rise of 26.4 per cent in the year to June, from 18.5 per cent in the March quarter. Prices in five of the six other capital cities increased by less than 13 per cent over the year to June, compared with the 15 per cent-plus growth in median house prices in the March quarter for all six of the other capital cities.