As a parent, it's very sobering to see the latest CoreLogic stats on house prices. Across Australia, the number of houses that sold under the $400K price tag has halved in the last 10 years. (62.4% in 2007 vs 31.2% in 2017).
No wonder the dream of home ownership is dwindling for those not yet in the market. As a long term property investor it used to be satisfying to see the prices trending up and thinking about the unrealised gains that were racking up. But now I'm a parent, the pace of price growth has become formidable and the realisation now is that the dream of home ownership is getting more and more unattainable for our kids.
While each level of Government has finally put housing affordability on their agenda, there needs to be agreement (& more action!) across all levels to address supply, the level of taxes imposed on new property and spending required on the critical infrastructure needed to open up new housing stock.
The number of houses that sold for less than $400,000 across Australia has fallen to 31.2 per cent, down from 62.4 per cent in 2007, CoreLogic reports. Additionally, units sold for less than $400,000 have fallen from 68.9 per cent of total units sold in 2007 to 37.3 per cent. CoreLogic research analyst, Cameron Kusher noted that in the combined capital cities nearly 17 per cent of houses and 28.4 per cent of units sold below the $400,000 threshold. In the year to June 2007, those figures were 53.1 per cent for houses and 66.3 per cent for units. Going back to 1997, houses transacted under the threshold made up 95.0 per cent and units 96.7 per cent. A decade ago, more than half of all capital city houses and units were less than $400,000,” Mr Kusher said.