CoreLogic expects house prices in Sydney and Melbourne to recover to the previous peak in record time
Why young people will NEVER own a house if house prices recover in record time
- CoreLogic expects house prices in Sydney and Melbourne to recover in record time
- Housing values in Australia’s largest real estate markets reached a low point in June 2019
- They are expected to exceed the peaks of 2017 by April 2020 after a record fall
Many young Australians seem to have missed the opportunity to own a house with house prices recovering in record time.
The average house price of Sydney is now for the first time in almost three years about to surpass $ 1 million.
Although house prices in Australia’s largest cities fell by a record level in 2017, they will recover in record time.
An analysis by the CoreLogic data group found that property prices in Sydney and Melbourne would probably only take 10 months to rise from the lowest point to the previous market peak.
Many young Australians seem to have missed the opportunity to own a house with house prices recovering in record time. Shown is a stock image
The average recovery of the property market since the end of the 1980s has taken 11.7 months.
CoreLogic’s head of residential research Eliza Owen said Australia’s largest housing markets were likely “to achieve a full nominal recovery” in April.
“With record-high values expected in Australian homes in a few months, 2020 will be the fastest market recovery in terms of the length of the downturn,” she said in a blog.
“And it’s run by residents of their own house.”
Since the low point in June last year, the average house price of Sydney has risen 14.7 percent from $ 866,524 to $ 994,300 in January 2020.
Home values in Australia’s largest city are only $ 55,440 from their peak in July 2017.
The average house price of Sydney is now for the first time in almost three years about to surpass $ 1 million. The photo shows a house in Asquith in the north of the city for $ 1.25 million
Over the past year, Sydney’s average house prices have risen by 9.3 percent, while the real estate market continued to decline last year.
The equivalent values of Melbourne have risen at an annual rate of 8 percent to $ 798,671.
During that time, Hobart real estate values for homes with a back yard have risen by 5.1 percent to $ 512,899.
The median house prices of Canberra rose by a more modest 4 percent to $ 701,561, while the center of Brisbane for detached houses rose by 1.4 percent to $ 547,860.
The property values of Adelaide increased by only 0.3 percent to $ 474,273.
Not every capital market enjoyed price increases in the past year.
The median house price of Perth has fallen by 5.6 percent to $ 456,803, while the equivalent value of Darwin has fallen by an even more dramatic 9.7 percent to $ 469,834.
As house prices peaked in Sydney and Melbourne, the Reserve Bank of Australia has lowered interest rates to a new low of 0.75 percent.
The Australian Prudential Regulation Authority has also relaxed the loan rules for investors and interest-free loans.