In a July 30 tweet, Greens leader Adam Bandt claimed house prices are rising by $1,200 a day, warning that younger workers have been locked out.
According to the Domain/APM data, the median Sydney house price surged by $106,948 over the June quarter to a record $1,410,133. That works out at a daily average (over 91 days) of $1,175 for Sydney.
But nationally, the median capital city price increased at a daily average pace of $576, rising by $52,456 during the quarter to reach $955,927.
While Bandt’s claim is correct if you live in Sydney, the situation in the rest of the country is different.
For the eight out of 10 Australians who do not live in Australia’s largest city, on average prices are rising at less than half that pace.
Depending on the measure used — and the timeframe applied — median house prices for Australia’s eight capital cities are rising at an average daily rate of between $465 and $576, and at lower rates in areas outside the state capitals.
Canberra was the only other capital city that came close to matching Sydney, with the median price rising by a daily average of $1,054.
Still, these are very impressive figures.
Even though more than half of Australia is currently stuck in a Covid Cocoon, it is likely to house prices will keep rising for the foreseeable future, albeit at a slower pace.
Recent ANZ Bank research suggests our housing markets remain in very good shape and national house prices should continue to rise strongly, even in Sydney where increasing levels of mobility restrictions have been in place since June.
According to ANZ, ultra-low interest rates, high savings buffers, and ongoing fiscal support are likely to continue to support the housing market.
In fact, ANZ has bumped up their 2021 forecasts a little.
They now forecast average capital city housing prices to rise just over 20% in 2021.
However, ANZ expects that price gains will moderate from the hectic pace of the first half of this year, given the increased uncertainty around the outlook, slightly higher fixed mortgage rates, and the prospect of macroprudential measures.
And then they are expecting average price gains of 7% in 2022. Still very respectable growth!
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Sure the markets are moving on, but not all properties are going to increase in value. Now, more than ever, correct property selection will be critical.
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