House prices drop during the coronavirus pandemic and wipe out two years of profit – this is the best place to buy NOW
- House and unit prices have fallen by an average of 2.0 and 2.2 percent, respectively
- Melbourne was hit hardest with homes falling 3.5 percent to a median of $ 881,369
- The units in Brisbane fell most overall, down 4.1 percent to a median of $ 375,285
- Canberra grew the most, with prices rising 4.1 percent to $ 819,090
House prices in Australia fell by two percent during the coronavirus pandemic, reversing its two-year gain.
House and unit prices fell 2.0 percent and 2.2 percent, respectively, in the three months to June, according to Domain’s house price report.
Melbourne was hit hardest, with homes dipping 3.5 percent to a median of $ 881,369, while Sydney fell 2.0 percent to $ 1,143,012.
The units in Brisbane fell most overall, declining 4.1 percent to a median of $ 375,285, while units in Darwin fell 3.7 percent to a median of $ 241,461 in just three months.
Melbourne was hit hardest, with homes dipping 3.5 percent to a median of $ 881,369, while Sydney fell 2.0 percent to $ 1,143,012
Dr. Nicola Powell, Senior Research Analyst at Domain, said this is the first quarter showing the impact of coronavirus on the market.
“Although most capitals have declined, declines have been minimal to date as unprecedented government incentives, mortgage vacations, low inventories and record interest rates shield the values from significant declines, helping to maintain stability in the housing market,” Dr Powell told 9News.
While major cities saw significant declines, house prices in Adelaide rose 0.2 percent to a median of $ 553,036.
Homes in Hobart also rose 1.4 percent to $ 529,388.
Canberra saw the biggest growth, with prices as a whole rising 4.1 percent to a median of 819,090.
House prices in Perth fell 1.5 percent in the June quarter, reversing the growth trend of the previous two quarters. The average home price for Perth is now $ 522,414.
The unit price also declined 4.9 percent in the quarter with a median price of $ 334,284, losing most of the previous quarter’s earnings.
However, this has created an opportunity for buyers looking to enter the market.
Dr. Powell said Melbourne’s second shutdown wouldn’t be good news for the city’s house prices.
The outlook for the Melbourne real estate market has changed in recent weeks as the city enters its second lockdown. The full impact of the first economic stop was evident in the June quarter, “she said.
Sales, quotations and clearance rates declined in April. However, the recovery quickly took hold as restrictions eased, confidence rose from April lows, suppliers returned, and more buyers decided it was a good time to buy – rising to a six-month high nationally. ‘
Dr. Powell said Melbourne’s second shutdown wouldn’t be good news for the city’s house prices, which have fallen 3.5 percent to a median of $ 881,369
It’s because the Morrison administration is expected to reveal an “eye-pleasing” budget deficit and debt after tagging tens of billions of dollars in measures to support the economy through the pandemic.
The update is expected to demonstrate that Victoria’s six-week blockade due to the second wave of infections will deliver $ 3.3 billion for gross domestic product growth in the September quarter.
The government has spent or planned $ 164 billion in coronavirus support, notably the $ 86 billion JobKeeper wage subsidy and $ 17 billion JobSeeker supplement.
At the same time, revenues have fallen sharply.
Corporate tax is expected to fall by a seventh or $ 25 billion over the two fiscal years.
Australia’s median home prices in June 2020
– 2.0 percent
– 3.5 percent
– 1.4 percent
+ 0.2 percent
– 1.5 percent
+ 1.4 percent
+ 4.1 percent
– 1.0 percent