The month draws to a close and RP Data's index shows that Sydney dwelling prices are up more than 2.7% in the month of June alone, increasing substantially from $649,000 to more than $667,000.
While I'm not a fan on monthly figures due to their inherent volatility, this should at least put an end to the flawed discussions of prices falling (or more properties being sold into a falling market) - they aren't.
While futures markets have priced in a one-in-five chance of an interest rate cut on Tuesday, particularly in light of the below figures, interest rates must surely be kept on hold in July.
The futures yield curve still expects interest rates to hit 2.50% by October 2013, but any signals of rapid dwelling price appreciation certainly won't encourage further cuts.
The next round of inflation data for the June quarter will be released on 24 July which will play a key role in determining future interest rate movements.
Over the past 12 months all of the main capital cities except for Adelaide have demonstrated capital growth, with Sydney (+5.6%) and Perth (+6.0%) leading the way.
The 5 city capital aggregate has consequently increased (+3.9%) over the period.
Source: RP Data
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