Housing affordability peaked in June and property prices could rebound to record highs in the first half of next year.
ANZ and CoreLogic's latest analysis of the market, based on property, economic and demographic data, shows real estate values fell 8.4 per cent nationally over the past two years, improving affordability.
"The rebound in prices is being driven by a number of factors including record low interest rates, easier access to credit and more certainty around tax arrangements.”
However June 2019 marked a turning point in housing affordability. Since then, dwelling values have begun to outpace household incomes across all capital cities, with the exception of Perth and Darwin where housing values are still
ANZ Senior Economist Felicity Emmett says “the rebound in prices is being driven by a number of factors including record low interest rates, easier access to credit and more certainty around tax arrangements.”.
If prices continue to increase at the current rate property prices would reach new highs in the first half of next year, especially in Melbourne and Sydney where housing values have risen 6 per cent and 5.3 per cent since May.
Below are the measures of housing affordability and fast facts from the report.
Tim Lawless is Head of Research for Asia Pacific at CoreLogic
The views and opinions expressed in this communication are those of the author and may not necessarily state or reflect those of ANZ.
24 Oct 2019