A jump in established house prices in the June quarter is not a cause for alarm, according to the HIA.
A 4.2 per cent increase in established dwellings in the June 2009 quarter followed four consecutive quarters of decline in the ABS series, with the index still down by 1.4 per cent relative to mid-2008.
"We're certainly not talking about a strong result here. But evidence of moderate growth flies in the face of incessant talk earlier in the year that house prices would drop into free-fall," said HIA's chief economist, Harley Dale.
The capital city established house price index rose in the June quarter by 4.9 per cent in Sydney, 5.2 per cent in Melbourne, 2.5 per cent in Brisbane, 3.4 per cent in Adelaide, 2.7 per cent in Perth, 2.5 per cent in Hobart, 2.4 per cent in Darwin and 3.6 per cent in Canberra.
