It’s fascinating to see the reporting of the 0.1% rise in house prices in November, especially in the context of the 10 consecutive monthly falls that pre-dated this wafer thin increase.

The SMH and The Australian on line suggest, via an AAP feed:

“Homeowners have received a bout of good news at year’s end, with a private survey showing the first rise in capital city home values in 11 months.”

I don’t have complete access to the house price data but note that the median national house price was $448,500 in October, down 0.5% from the level in September. The 0.1% rise in November therefore equals a “cash” gain of $400, after a “cash” fall of around $2,200 in October. And it must be noted that in the 10 months to October, the median house price fell around $18,000.

If house prices keep rising at the same pace as they did in November (i.e., 0.1% per month), it will take around 3 and a half years to regain the nominal losses of the first 10 months of 2011! In real terms, even with 3 and half years of 0.1% monthly rises, house prices will be down a further 10% or so over that time.

Not the stuff in my mind that suggests “a bout of good news”.