Fri. Jan 21st, 2022

The median value of an Australian home has grown by more than $ 126,000 over the last 12 months as buyer demand and low mortgage rates left the real estate market.

It shows new data from real estate data company CoreLogic in November Australian housing values rose 1.3 percent, bringing the annual growth rate to 22.2 percent for the nation’s median.

When split, it translates to an annual increase to the median of $ 126,700 – or more than $ 10,558 per share. month.

Australia’s real estate market has grown at the fastest rate since the late 1980s, and experts warn that a rise in interest rates could have a profound impact on thousands of borrowers. (Peter Rae)

But not all hope is lost for those trying to enter the real estate market. November’s rise of 1.3 percent was the softest monthly increase since January 2021, marking the beginning of a market slowdown.

“Virtually all factors that have driven housing values ​​higher have lost some strength in recent months,” said CoreLogic’s research director Tim Lawless.

“Fixed-rate mortgage rates are rising, higher listings are removing something urgent from buyers, affordability has become a more significant barrier to access, and credit is less available.”

Brisbane and Adelaide recorded the fastest monthly growth – booming at 2.9 percent and 2.5 percent, respectively – translating into a monthly increase of $ 18,500 and $ 13,500.

Brisbane and Adelaide experienced the greatest progress during November as border restrictions eased. (AAP / Getty)

Lawless said that now most domestic borders are open, the market is starting to see more people moving away from the major capitals like Sydney and Melbourne.

“Compared to the larger cities, affordable housing is less urgent, there have been fewer disruptions from COVID lockdowns, and a positive rate of interstate migration is boosting housing demand,” said Mr. Lawless.

“On the other hand, Sydney and Melbourne have seen demand more severely affected by price pressures and negative migration from both an intergovernmental and overseas perspective.”

Sydney’s average home value – which includes both apartments and detached houses – is now over $ 1 million after an annual increase of 25.8 percent.

Darwin remains the cheapest capital to buy property with an average home value of $ 493,047.

A complete breakdown by capital can be seen in the table below.

The median price of a property – any property – in Sydney is now over seven figures. (AAP)

Affordable housing becomes ‘challenging’

In its report, CoreLogic noted that affordable housing was fast becoming a major problem for buyers in the major capitals despite most factors pushing house prices higher up “declining or expiring”.

“Affordable housing is becoming more challenging from month to month,” the report notes.

With higher entry barriers, especially for new home buyers who do not have the benefit of earned equity behind them, it is likely that housing demand will be gradually affected as fewer households can afford to buy.

“A natural consequence of deteriorating affordability could see an increase in demand for more affordable housing with higher density, such as townhouses and units.”

There are fears that the first home buyers will be pushed into units and townhouses as the problems of affordability deepen. (AAP)

Australia Housing Average *

Capital city:

Annual change:

Median value:


+ 25.8 pct

$ 1,090,276


+ 16.3 pct

$ 788,484


+ 25.1 pct

$ 662,199


+ 21.4 pct

$ 558,179


+ 14.5 pct

$ 528,540


+ 27.7 pct

$ 676,595


+ 16.7 pct

$ 493,047


+ 24.5 pct

$ 882,519


+ 22.2 pct

$ 698,170

* CoreLogic Hedonic Home Value Index November 2021. Includes both apartments and houses

Bondi Beach property sold for $ 1 million over reserve

The information on this website is general only and does not constitute personal financial advice. The information is prepared without regard to your personal goals, financial situation or needs. Before shopping for any information on this website, you should consider whether the information is appropriate in relation to your goals, financial situation and needs.

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