Australia’s property market has proven to be unpredictable over the past 24 months.
And now research by PRD shows how supply is not meeting demand as the property market’s pace continues to slow.
PRD’s Australian Economic and Property Report for 2022 reveals that as a whole, the capital cities have seen a “slower pace of median house price growth in the 12 months to the 1st half of 2022, rising by an average of 6.3 per cent”.
This is in comparison to the 15.5 per cent average median house price growth from “the 12 months to the second half of 2021”.
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speaking on Today ExtraDomain’s national managing editor, Alice Stolz, reiterated the fact that it’s down to supply and demand – something we don’t have much of.
“Interest rates are really hitting prices hard. We’ve been seeing downturns and upturns in the market, and Melbourne and Sydney are certainly leading that charge,” she said.
However, not all capital cities are the same, with Sydney and Melbourne seeing a drop in median house price growth.
On the other side of the spectrum, Brisbane and Darwin saw a double digit median house price growth.
As outlined in the report, uncertain economic and property conditions is at the forefront.
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“The share of disposable income that has flown to scheduled principal payment and mortgage offset accounts has spiked since mid-2020,” the research reveals.
“Technically, a cash rate hike can be absorbed through a higher mortgage offset account (as a buffer), and the share in which income flows to either principal payment, interest, or mortgage offset changes.
“However, we are currently facing increasing costs in various aspects of life, which makes it more difficult.”