Australia Housing Boom
The Not-so-Drastic Rise in Prices McCarthy Homes 344 Bilsen Road, Geebung QLD 4034 (07) 3326 6600
Many things have been written about the boom in Australia’s housing prices, which has been driven by record low interest rates, pent up demand, and more people buying for investment. Analysis from the Housing Industry Association (HIA), however, show that the rise in prices is not actually that drastic when looking back at the last five to ten years, as well as in terms of real rises and adjustments for inflation.
A Decline in Most Capital Cities
The real surprise is that the real housing prices have actually declined in most capital cities— except Sydney—over the last five years. So, as experts say, if Australia has a housing problem, then it is confined mostly within Sydney.
A Deeper Look on Housing and Unit Prices
According to statistics, the median price in the eight capital cities of Australia grew by 3.1 per cent (on average) from 31 March 2014 to March of 2015. The average growth, however, is actually only 1.5 per cent once Sydney is excluded. Sydney’s median prices for housing rose to 14.9 per cent, while its median unit price soared to 9.7 per cent. When comparing the median housing prices to the average annual earnings, homebuyers need more than seven years’ worth of income to buy a home in Sydney.
RESOURCES:
http://www.mccarthyhomes.com.au/ http://www.theaustralian.com.au/business/property/house-price-data-burstsalarmists-bubble/story-fniz9vg9-1227290751444 http://www.rebonline.com.au/breaking-news/8865-housing-boom-may-bedrawing-to-a-close