"Demand for new homes continue to push property prices up as prospective buyers line up to inspect property in certain regions." - Ben Crow, Chief Operating Officer
Australia's property values are higher than they have ever been in history, with prices now more expensive prior to the COVID-19 pandemic.
New data from property firm CoreLogic shows the median national dwelling value – which factors in both houses and units – lifted 0.9 per cent over the past month to $574,872.
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According the Australian Bureau of Statistics (ABS), the average weekly earnings for someone working full time is $1713 – or roughly $89,000 a year.
Therefore, to afford a property in Australia it would cost the average worker 6.5 years of their yearly salary (without spending a cent) to own one outright.
But medians and averages can be skewed by the top end of market.
CoreLogic's data shows the median value of a dwelling in Sydney's most expensive market of Sydney is now $871,749 – or roughly 10 years of a yearly unspent income using our previous figures.
The data also shows that a skew towards working from home, and an immediate ceasefire on international visitors has seen the values of regional markets boom.
Home values across Regional Victoria and Regional NSW rose 1.6 per cent and 1.5 per cent respectively in January compared with a 0.4 per cent increase in home values across Melbourne and Sydney.
"Internal migration data shows more people are leaving Sydney and Melbourne for regional areas, resulting in a transition of activity from the metro regions to the outer fringe and regional markets," CoreLogic's research director Tim Lawless said.
"This demographic trend is further compounded by the demand shock of stalled overseas migration.
"As Melbourne and Sydney historically receive the vast majority of overseas migrants, these metro areas have been the hardest hit by this demand shock."
Curiously – and perhaps reinforced by Australian's yearning for a sea or tree-change – houses are outperforming units by some margin.
Nationally, the price of a house has risen 3.5 per cent over the past six months while unit prices on a national basis remain unchanged.
"Demand for units has diminished through COVID-19 amidst record low levels of investor participation and changing living preferences," Mr Lawless said.
"At the same time supply levels are heightened in some precincts. While demand and supply remain imbalanced we are likely to see units continue to underperform relative to detached housing markets."
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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Marsh, S. (2021, February 1). Australia's property prices hit fresh record high after COVID-19 pandemic: How long it takes to afford a home. 9News - Latest news and headlines from Australia and the world. https://www.9news.com.au/national/australia-property-prices-hit-record-highs-how-long-it-takes-to-afford-a-house/69921da3-ba6f-4d32-828e-6ad9e04c7e12