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There are a number of interesting patterns to take notice of leading up into spring, according to a new analysis from one Australian research house.
In comments for CoreLogic Property Pulse, research analyst Cameron Kusher wrote that there has been “no noticeable rise” in sales under $400,000, in spite of falling dwelling values over the past year.
Last financial year, he noted, over one-quarter of houses sold across the country were under $400,000, as were 32.5 per cent of all unit sales. And even with a weakening housing market, the proportion of properties selling for under this price is almost unchanged from the previous year.
Across the combined capital cities, 13.9 per cent of house sales over the 2018–19 financial year were under $400,000 and 24.6 per cent of unit sales were under this price point,” Mr Kusher wrote.
“The share of house sales under $400,000 was virtually unchanged from the previous year, recorded at 13.8 per cent, while the share of unit sales was noticeably lower at 22.3 per cent. Despite house and unit values falling by -8.7 per cent and -5.9 per cent, respectively, over the year, it is interesting to note that the share of unit sales under $400,000 has increased much more for units than houses.”
In the combined regional markets, Mr Kusher continued, 42.8 per cent of all house sales over the past financial year and 54.3 per cent of all unit sales were under $400,000.
“Unlike the combined capital cities, the combined regional markets have seen the share of sales under $400,000 record a sizeable decline compared to the previous financial year, when 44.1 per cent of house sales and 55.6 per cent of unit sales were below $400,000.”
The next financial year “could look very different to what we have seen” over the 2018–19 financial year, he surmised.
“We’re only in mid-August and we’ve already seen interest rates reduced twice, serviceability floors on mortgages reduced and some recent rises in dwelling values in the largest capital cities,” Mr Kusher said.
“While a significant rise in dwelling values isn’t expected, there is an expectation of a moderate increase in dwelling values; as a result, the 2019–20 financial year is expected to see fewer sales under $400,000 than those recorded in 2018–19.”
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