news.com.au: Prices drop: Sold on saving not spending

Going, going, going ... potential home buyers are choosing to save their pennies rather than bid for real estate.Picture: File
Source: Herald Sun
Capital city house prices fall 2.7 per cent Sydney the only market to record a rise Brisbane, Perth house price fall biggest
HOUSE prices have fallen almost three per cent so far in 2011 as potential home buyers choose to save their pennies rather than bid for real estate.

The RP Data-Rismark Hedonic home value index shows a 2.7 per cent decline in Australia's capital cities house prices through the first five months of 2011.
In the 12 months to May, prices fell 2.3 per cent, the report said.
RP Data research director Tim Lawless said the housing market was soft as potential home buyers focussed on saving, not spending, because they were worried about the economy.
He added that sales volumes in real estate were about 25 per cent below the five-year average.
Meanwhile, the number of listings was up 25 per cent on the prior year.
"Despite the low rate of unemployment and the strength of the resources sector, it is clear that the average Australian is content to pay-down debt and wait for some economic certainty to return," Mr Lawless said in a statement.
Rismark joint managing director Ben Skilbeck said the high Australian dollar had made local housing more expensive for expatriates, particularly at the luxury home end of the market.
Declines were biggest in the resources-linked cities of Brisbane and Perth, where the median house price fell 5.9 per cent and 7.5 per cent, respectively.
Mr Lawless said house prices in Perth had been falling since late 2007 due to a lack of buyer demand, despite strong population growth and low unemployment in the West Australian capital.
The report, which was released today, showed Sydney was the only market to have recorded a rise in property values in the year to May, with house prices in the Harbour City up 1 per cent.
In brighter news, the report said rental yields had improved and Mr Skilbeck said vacancies remained very tight.
"We are not looking for any capital gains in 2011," Mr Skilbeck said.
"Total returns will be boosted by very solid growth in rents, with gross yields in May now at five per cent for Aussie apartments."
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