How Property Quadrupled in A Decade. A Historic Case Study

From the archive, 30 December 1947: A year of soaring house prices

A very interesting link. I knew similar price action took place in the 1970s and 1980s. But I was unaware of the above. An interesting read.

 

And for anyone that thinks homebuilder is a new thing...

1932
....by the Corporation for any of the following purposes,
namely:-
(a) External and internal painting of residences;
(b) General repairs to preserve residences;
(c) Alterations, additions, and other improvements...



https://digitalcollections.qut.edu...._buildings_improvement_act_of_1932_1may81.pdf

 

I've maintained a data set of Adelaide metropolitan median house prices, mortgage interest rates and inflation rates going back 50 years, I'll share it here. I've always lived in and invested in Adelaide, hence the interest. The stand out to me is the last decade where capital growth only just kept up with inflation (1990's) was followed by a decade (2000's) where the median house price almost tripled.
I note that Adelaide has closed out a decade (at the end of 2019) where the median house price didn't keep up with inflation, so I wonder, will history repeat, will the 2020's see median house prices almost triple again...?? Seems unimaginable to me, but I'm sure home buyers in 1990 couldn't imagine they'd have to pay 284% more for a house by 2000 either...

 

interesting!

Key to note is those that are always looking to 'time' the market almost always miss the big boom cycles as they creep up quickly and dump very significant growth within a few years - before stagnating again for another long period. The house price per your graph appreciated by c70% in a mere 3 years, from 2001 ($150k) to 2004 ($257k). I have no doubt it could happen again in this cycle, however my personal (non scientific) belief is that we are at the cusp of a big boom nationally. I have never seen all stars aligned so perfectly and short of APRA/ ASIC putting in big breaks in another couple of years, we would have seen a national price rise of circa 40%.