home loan News from the RBA

Market analysis firm RP Data's monthly measure of prices, the RP Data-Rismark May Hedonic Home Value Index, fell by 1.9 per cent for the state and territory capitals in May. A fall of that size is typical of the pattern for May seen in the past couple of years. Annual growth remains strong, particularly in Sydney where prices in May were up by 16.6 per cent from a year earlier, and Melbourne with an annual gain of 9.9 per cent. At the other end of the scale, prices in austerity-affected Canberra were up by only 2.6 per cent, while Hobart prices were up only 1.4 per cent through the year.