The end of 2015 saw a decrease in Australia’s median capital city housing cost, breaking a 13-quarter trend of excessive rises in housing costs. The falling house prices could mean good things for Sunshine Coast mortgages.
In February 2016, the Real Estate Institute of Australia (REIA) released the most recent Real Estate Market Facts report, revealing that the December 2015 quarter decreased by .4% to $543,368. The decrease shows us that this is the first time a decline in the housing market has revealed itself in three years.
Likewise, the average cost of a capital city home decreased by .7% for other dwellings, to $543,468.
According to REIA president Neville Sanders, there’s been “strong growth in Hobart, Canberra, and Brisbane, followed by marginal increases in Darwin and Perth where they were unable to offset falling median house prices in Sydney and Melbourne. Adelaide recorded “no change” in the quarter.
Also, according to Sanders, Sydney saw the largest decrease in median housing cost, causing many to speculate if Sydney’s housing market had reached its peak. The average cost of a house in Sydney fell by 2.5%, to $1,025,478, in Q4 of 2015, while Melbourne decreased by .1% to $718,000.
The largest increase in housing prices was found in Hobart, jumping a whopping 9.8% to $392,000. In Canberra, the average cost of buying a home rose 3.7 %, to $593,000. In Brisbane, costs climbed 3.2%, to $490,000.
While the last quarter of 2015 may have seen a decline in the average housing costs, it is still rising on a yearly basis. The average decline could soon change, however, thanks to the changing policy towards investors in the real estate market.
Are you trying to make heads or tails of the Australian housing market? Consult with mortgage brokers on the Sunshine Coast today!