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Call that a housing slump? As prices rise again, many will be stuck renting

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Was that it? The property downturn in Sydney and Melbourne looks to be at an end.

Domain group data released on Thursday showed house and unit prices in Melbourne rose a little last quarter while in Sydney the median price for houses and units fell by just 0.4 per cent.

Illustration: Matt DavidsonCredit:

“There are signs things are turning around in Sydney and Melbourne,” says Domain economist Trent Wiltshire.

The property boom in both cities lasted five years but the bust might be over in about two.

Domain's figures show the median price for a detached home in Sydney soared by 86 per cent between 2012 and 2017 and has since fallen by 14 per cent. In Melbourne house prices rose by 73 per cent from trough to peak before falling back by 10 per cent.

A few years back federal and state governments were under real pressure to improve housing affordability.

But the steady flow of headlines about falling property prices lately has overshadowed the issue.

So has that price correction done much to alleviate the housing affordability crunch that vaulted to the top of the national agenda during the boom?

There's no doubt conditions are now more favourable for first-time buyers – their numbers have risen sharply since the property market turned.

The Housing Industry Association’s latest housing affordability report for the June quarter shows the combination of lower property prices and lower interest rates means affordability........

© The Age