Corelogic Property Price 'SuperSurge'

Discussion in 'Property Market Economics' started by Peter2013, 15th Nov, 2019.

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  1. Peter2013

    Peter2013 Well-Known Member

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  2. Andrewjh

    Andrewjh Well-Known Member

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  3. Gockie

    Gockie Double boosted!! And still covid free. Premium Member

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    Wow.

    “House values in Sydney alone increased by 3.1 per cent, taking the median house value to $956,249. It was a $37,900 increase through the month, with values now up by 4 per cent this year.”

    $37,900 is a fair chunk of most people’s annual take home pay, or in another way to see it, an increase more than $1k a day.
     
  4. Peter2013

    Peter2013 Well-Known Member

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    Annualised, that's 37.2 percent!

    When interest rates hit 0.25% middle of year year, do you think we could see house prices rising by 50% per annum?

    Exciting times!!
     
  5. Gockie

    Gockie Double boosted!! And still covid free. Premium Member

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    Couple of things.
    1. I wouldn't expect to see interest rates hit 0.25%.
    2. I wouldn't annualise a 1 month figure.
    3. So no, I don't expect to see a house price rise of 50% within a year.

    I'm an optimist, and if house prices manage to double in 7-10 years I think that's awesome.
     
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  6. Peter2013

    Peter2013 Well-Known Member

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    CoreLogic-weekly-movements-1.png
    I think the trend is very clear. Last month recorded 3.1% (that's 0.77% per week - way off the graph - and fits the trend of the graph.)
     
  7. Gockie

    Gockie Double boosted!! And still covid free. Premium Member

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    There was one time since the 1970’s when house prices went up 50%... it was Perth, 1989. Now as I said, I’d be happy with a doubling in 7-10 years. Note, in Sydney we’ve also had a massive boom 2013-2017 too. We are only just getting back to the peak again.
    What we can learn from Australia's median house prices from 1970-2016 - Homely
    D277F6D6-3430-48C6-8A20-531F21E1B32C.png
     
  8. Peter2013

    Peter2013 Well-Known Member

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    What was interest rates at the time? Bet they were not 0.75% and heading to 0.25%
     
  9. Codie

    Codie Well-Known Member

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    June 1989 rates hit 17% and stayed there until April 1990.
     
  10. Gockie

    Gockie Double boosted!! And still covid free. Premium Member

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    Our interest rates have pretty much been dropping since 2011*, and house prices in Sydney have gone up a lot (doubled) since then. That’s cool.
    To ask for a 50% gain again within 12 months is a huge ask. I’d like it, as I’ve got interest in a few million dollars worth of Sydney property. But I doubt it would happen.

    * I’ve edited the post
     
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  11. Mark

    Mark Well-Known Member

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    Good news for people who have properties in Sydney. Need to hurry up if you need to buy a long term family home. If it is investment, I think it is still not a good time.
     

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