Recent research indicates a significant surge in Australian home prices over the past five years, with the median price increasing by approximately $230,000. According to CoreLogic’s April Housing Chart Pack, house prices have soared by 39.1 per cent since March 2020.
Though this rise in percentage seems modest compared to historic highs witnessed in the late 1980s and early 2000s, the increase in monetary terms is notable. CoreLogic economist Kaytlin Ezzy highlights that the current jump in prices equates to a $230,000 increase, starkly contrasting with a $140,000 rise recorded by December 2003 and a mere $60,000 increase noted in March 1989.
The report reveals that in the last quarter alone, Australian home values climbed by 0.7 per cent overall—capital cities saw a 0.5 per cent increase, while regional areas experienced a more robust 1.4 per cent rise. Nationally, there were 42,553 property sales in March, bringing the yearly total to 528,212. While this figure is 2.1 per cent lower than the last peak in December 2022, it still marks a 4.6 per cent increase compared to the previous year and 4.1 per cent above the five-year average.
Interestingly, properties are now taking longer to sell, with the median time on the market rising from 30 days last year to 40 days in the first quarter of 2023. Ezzy notes that the substantial growth in housing values reflects a combination of robust demand, limited supply, and a relatively stable economy.
Despite these positive trends, the growth trajectory appears moderate when compared to previous cycles involving financial deregulation, economic booms, and significant demographic changes that previously drove exceptional price growth.
Looking ahead, the CoreLogic report anticipates a rise in new property listings peaking next week as the Easter period approaches, followed by a seasonal decline as winter sets in. Overall, the data suggests that while the housing market remains buoyant, the pace of growth may be tempered compared to earlier periods of rapid appreciation.