Canberra has followed a national trend of house price stagnation recording a rise of just 0.2 per cent in the latest quarter.
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New data from the Australian Bureau of Statistics shows the average increase in the price of ACT houses has dropped dramatically from the December quarter level of 2.8 per cent.
Nationally the capital cities recorded a rise in house prices of just 0.1 per cent for the March quarter, following a 2 per cent price increase in the previous quarter.
The Housing Industry Association said the stagnation in house price growth confirmed the road to recovery in the housing market was a delicate one.
However it said today's decision by the Reserve Bank of Australia to lower interest rates would assist in the recovery if the banks passed on the full rate cut.
The house price indexes report for the March quarter, issued today, indicates that Canberra was one of only four capital cities to record a rise in house prices.
House prices grew 0.2 per cent in the ACT compared to 1.9 per cent in Darwin, 1.2 per cent in Perth and 0.2 per cent in Melbourne.
Sydney showed no movement for the quarter and house prices fell in Brisbane (0.3 per cent), Adelaide (0.1 per cent) and Hobart (0.3 per cent).
The ABS data also showed that Canberra recorded a rise in house prices of just 1.5 per cent in the past year.
The ACT was marginally ahead of Brisbane (1.4 per cent), Melbourne (1.1 per cent) and Adelaide (0.9 per cent).
Comparatively Darwin recorded a yearly rise in house prices of 8 per cent, Perth 6.1 per cent and Sydney 3.6 per cent.
Hobart house prices fell 1.9 per cent.
Housing Industry Association senior economist Shane Garrett said the national figures confirmed the association's long-held position that any recovery underway in the housing market was a delicate one.
He said the robust price growth seen at the end of 2012 had “petered out and once again the market will have to struggle to regain momentum”.
HIA regional executive director Neil Evans said the figures showed the whole industry was weak.
“All governments – federal and state and territory – need to look at some policy reforms to get the housing industry moving in the right direction,” he said.