The median value of an Australian home grew by more than $126,000 in the past 12 months as buyer demand and low mortgage rates supercharged the property market.
New data from property data firm CoreLogic shows that in November Australian housing values rose 1.3 per cent, taking the annual growth rate to 22.2 per cent for the nation's median value.
When broken down, that translates to a yearly increase to the median value of $126,700 – or more than $10,558 per month.
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But not all hope is lost for those attempting to enter the property market. November's 1.3 per cent increase was the softest monthly rise since January 2021, earmarking the beginning of a market slowdown.
"Virtually every factor that has driven housing values higher has lost some potency over recent months," CoreLogic's research director Tim Lawless said.
"Fixed mortgage rates are rising, higher listings are taking some urgency away from buyers, affordability has become a more substantial barrier to entry and credit is less available."
Brisbane and Adelaide recorded the fastest monthly growth – booming 2.9 per cent and 2.5 per cent respectively – translating into a monthly rise of $18,500 and $13,500.
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Mr Lawless said that now most domestic borders are open the market is beginning is see more people move away from the bigger capital cities such as Sydney and Melbourne.
"Relative to the larger cities, housing affordability is less pressing, there have been fewer disruptions from COVID lockdowns and a positive rate of interstate migration is fueling housing demand," Mr Lawless said.
"On the other hand, Sydney and Melbourne have seen demand more heavily impacted from affordability pressures and negative migration from both an interstate and overseas perspective."
Sydney's median dwelling value – which includes both apartments and freestanding houses – is now over $1 million following a 25.8 per cent annual increase.
Darwin remains the cheapest capital city in which to buy a property with a median dwelling value of $493,047.
A full breakdown by capital city can be seen in the table below.
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Housing affordability becoming 'challenging'
In its report, CoreLogic noted that housing affordability was fast becoming a major issue for buyers in the bigger capital cities despite the majority of factors that have been pushing house prices higher "diminishing or expiring".
"Housing affordability is becoming more challenging from month to month," the report notes.
"With higher barriers to entry, especially for new home buyers who don't have the benefit of accrued equity behind them, it's likely housing demand will be progressively impacted as fewer households can afford to buy.
"A natural consequence of worsening affordability could see demand increase for more affordable higher-density housing options such as townhomes and units."
Australia's Median Dwelling Values*
|
Capital City: |
Annual change: |
Median value: |
|
Sydney |
+ 25.8 per cent |
$1,090,276 |
|
Melbourne |
+ 16.3 per cent |
$788,484 |
|
Brisbane |
+ 25.1 per cent |
$662,199 |
|
Adelaide |
+ 21.4 per cent |
$558,179 |
|
Perth |
+ 14.5 per cent |
$528,540 |
|
Hobart |
+ 27.7 per cent |
$676,595 |
|
Darwin |
+ 16.7 per cent |
$493,047 |
|
Canberra |
+ 24.5 per cent |
$882,519 |
|
National |
+ 22.2 per cent |
$698,170 |
*CoreLogic Hedonic Home Value Index November 2021. Includes both apartments and houses
The information provided on this website is general in nature only and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information on this website you should consider the appropriateness of the information having regard to your objectives, financial situation and needs.
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