April is a 'Blip' on Path to Real Estate Recovery

Softer real estate market performance across the country in April is likely down to seasonal factors and will represent a small "blip" in the likelihood of broader recovery in the market.

This is the conclusion of Rismark and RP Data analysts as new figures showcasing the state of Australia's real estate market at the end of last month were released by the two organisations.

RP Data's research director Tim Lawless said that when considered in the context of the bigger picture, the 0.5 per cent drop in property values across Australia's capital cities is not likely to indicate a long-term trend.

He explained: "When viewed in line with other metrics such as auction clearance rates, private treaty indicators and some improvement in housing finance demand, it is likely that the negative April result will be a blip along the path to recovery."

Mr Lawless went on to say that the first three months of 2013 represented a period of particularly high growth, which is likely to be tempered with "a more measured pace" as we move through the rest of the year. This, he added, is a seasonal trend that has been observed before, and should not be taken as cause for concern.