Maybe it wasn't the first home buyers after all

House values across Australia rose by 4.5% in the first half of 2009, according to data from RP Data-Rismark International.

RP Data national research director Tim Lawless said prices were up across all market segments, however growth was tipped to slow in the second half.

“The recovering residential environment comes as consumer and business confidence records large improvements,” he noted.

“Housing finance approvals are trending upwards for both owner-occupiers and investors and auction clearances are averaging more than 70% across the nation.

“Growth across all markets is being recorded over a broad base, not just in first home buyer markets as commentators have suggested.”

Looking at individual markets, median prices in Sydney were up 4.8% over the past year to $533,904 – surpassing the previous peak set in February 2004.

Melbourne recorded an increase of 6.5% in house values for the first half, although rental yields have not kept pace and the city now boasts the lowest rental yield in the country at 4.2% for houses and 4.8% for units.

Brisbane had a slow start to the year, with values up 1.4% for the half, although Adelaide was the worst performing city with values up just 0.6%.

Darwin had another blockbuster start to the year – in the last five years value growth has averaged 15.4% per year – with values up 7% for the first half of 2009.

Perth recovered slightly again, up 1.9% for H1 although still with home values around $30,000 cheaper than the September 2007 peak. However the market is picking up with houses taking an average of 31 days to sell in the June quarter, compared with 59 days last year.

Canberra values remained quite flat – just a 3.1% growth in the first half – however it has maintained its position generating the second highest rental yields in the country at 5.2% for houses and 5.7% for units.

Rismark International managing director Christopher Joye said Australia’s housing shortage was underpinning the market’s resilience.

“The biggest constraint on new supply coming online is access to finance – developers have had grave difficulties getting adequate credit from lenders,” he said,

“The banks have been reluctant to lend because of concerns about house price falls since the crisis began. If policy makers want to stimulate new supply, the last thing they should be doing is spooking lenders about a recovery that has only just started.”