9News: Property turn-around?

Ross Greenwood: For home-owners, its welcome relief. Home values in June rose for the first time in two years.

For apartments, prices rose 0.3 percent, to $682,000.

For houses, the prices were flat, with the median price $866,000.

Now, in the past 12 months, house prices are down 10.8 percent; apartments down by 8 percent.

What’s not in doubt is that politics and rate decisions have put more confidence into what was a deflated market

Tim Lawless, Corelogic: It does look like the lower rates and the improvement in sentiment following the Federal Election, and generally the relatively strong economic conditions is what’s driving this turnaround.

Greenwood: Now, in Sydney, areas that have suffered the most include Ryde, south-west and the Sutherland Shire.

Where, from the peak, some suburbs have fallen more than 20 percent.

And this market might get another shot of confidence tomorrow when the Reserve Bank makes its latest interest rates decision.

Money Markets suggest a 70 percent chance of a rate cut. Even so, most economists say even if the rate cut doesn’t happen tomorrow it will happen in a month’s time.

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