How lucky Aussies made almost $60,000 in a year by doing nothing
Australians lucky enough to own a property typically earned $59,000 in the last financial year.
That came as house and condo prices rose 8 percent to $793,883, new data from CoreLogic shows.
This marked a big change from a 2 percent drop in 2022-23, when the Reserve Bank raised rates aggressively.
CoreLogic research director Tim Lawless said a housing shortage meant house prices were likely to continue rising despite interest rates hitting a 12-year high of 4.35 per cent.
“Until supply and demand are rebalanced, there is likely to be further upward pressure on house prices,” he said.
‘It will likely take a long time for the supply of new homes to increase significantly, as permitting levels are well below average and barriers to construction, including tight profit margins and a scarce labor supply, remain significant.’
AMP chief economist Shane Oliver said house prices were likely to rise 5 per cent in 2023-2024 unless interest rate cuts were delayed.
‘We expect house prices to rise by around 5 percent this fiscal year as the supply shortage continues, but the implementation of rate cuts and the possibility of further rate increases, together with the rising trend in unemployment, pose a significant constraint and downside risk . ‘ he said.
Australians fortunate enough to own a home typically earned $59,000 during the last financial year (stock image)
Surprisingly, apartment prices rose the most in the year to June, but only in Brisbane and Adelaide, where median apartment prices were still higher than house prices.
“Housing prices are likely to remain widely divergent, although Perth, Brisbane and Adelaide will remain strong for some time, helped in part by interstate migration, but in other cities, particularly Melbourne, growth will slow,” said Dr. Oliver.
The average house price in Brisbane rose 18.8 per cent to $622,567, while the city’s average house price rose 15.2 per cent to $953,028.
The price of medium-sized apartments in Adelaide rose 18 per cent to $530,514, compared to a 15.1 per cent increase for houses, taking house prices to $824,669.
Perth was the strongest market in Australia, with house prices rising 23.7 per cent to $791,926.
In another bizarre development, Australia’s two largest cities saw only moderate price growth despite receiving the largest influx of migrants from abroad (pictured shows a ‘sold’ sign in Sydney)
In another bizarre development, Australia’s two largest cities saw only limited price growth, despite receiving the largest influx of migrants from abroad.
Sydney’s median house price rose 6.8 per cent over the year to $1.466 million, while central Melbourne rose just 1.2 per cent to $948,879.
Australia’s smallest capital city markets showed weaker growth.
House prices in Darwin rose 3.1 per cent to $589,166, while values in Canberra rose 3.2 per cent to $986,414.
House prices in Hobart fell 0.3 percent to $691,339.