Talk of housing affordability continues to dominate Australian media and politics. Last week we watched as a furore erupted over whether it’s better to save for a house or spend your hard earned money on breakfasting on smashed avocado.
Regardless of how you choose to spend your money we can all agree that investing in a home is a significant financial commitment that’s not to be taken lightly. And while talk of ever increasing house prices can be off-putting for potential home buyers and investors it’s always wise to ignore the hype and check the facts.
An article by real estate analysts CoreLogic states there is a common perception that every seven to 10 years in Australia property prices double. However, their analysis shows while prices have come close to doubling in Sydney, Melbourne and Darwin over the past decade, other major cities have seen increases far below 50% over the same time period.
Ten years ago, the average national house price was recorded at $330,000, with average unit or apartment prices trailing just behind at $310,000. Now, the median house price is $499,000 and apartments sit at around $445,000. This is an approximate increase of 51% and 44% respectively, over a ten-year period across Australia.
Melbourne has reached the highest median growth at an average of 85% for residential housing between 2006 to 2016. However, across the nation only 573 suburbs – and unsurprisingly these are predominately in cities – have seen the median selling price double.
As with many long term investments, there are never any true guarantees. If you already have a foot in the Melbourne property market this data gives an optimistic view of your property value’s potential to grow in the future.
And if you a first home buyer? We can talk to you about the strategic areas to look at for both affordability and future growth.
If you’re interested in getting to know the Melbourne property market, considering a purchase in the near future or need help negotiating a home loan then please get in touch with one of our experienced advisors.