The Australian Bureau of Statistics has released its first estimates for house prices since the housing bubble burst in 2007.
It’s a huge change, but not a surprise.
Here’s what we know.
Source: ABS – House Price Indices (ARIS) release The ABS released the figures on Wednesday, a year on from the peak housing bubble.
The figures show the median price of a house in Australia has risen by 11 per cent over the past three years.
The ABS says that over the same period, average home prices have fallen by 3.4 per cent.
That’s a big fall.
That said, median home prices are still up 8.9 per cent in real terms over the last year.
It was a huge increase for the most part, with the median house price rising by 20 per cent and median sales prices up 9 per cent, and median rents up 12 per cent between the end of the bubble and now.
What we can say with confidence is that median house prices are not going to fall any time soon.
There’s no reason to think that house prices will fall below $2 million.
They’re already pretty much in the upper end of what’s considered a median household income in Australia, which is about $52,000.
But there’s a fair bit of room for improvement in the next few years, says Mark Zandi, chief economist at Zandi Associates.
He says that while there are a number of factors to consider, the biggest one is the fact that the number of houses under construction has dropped dramatically.
That’s partly due to the Federal Government’s decision to cap the number that can be built at 30 per cent of the country’s population.
But more important is the change in the housing supply, which Zandi attributes to a combination of the housing market being more favourable, the introduction of more affordable property and a better-funded local government.
The Australian Bureau on Wednesday also released a series of house price indices.
What’s a median house?
Median house prices have been rising over the years, but this is the first time they have been published.
They are based on a range of factors, including the median sales price, median income, median property values, median house size and median number of bedrooms.
There are several different measures of house prices across Australia, ranging from median house value to median property price.
We’ve used the median as the base for these figures.
This is the lowest possible level of affordability in terms of purchasing power parity, or the ratio between a house and a similar-sized home.
That is to say, the less expensive the house is, the higher its value is in terms in purchasing power.
The median house is the value of a home in Australian dollars.
A lot of this is due to changes in Australia’s housing market, says Zandi.
Housing affordability is also influenced by the size of the market, which has also changed in recent years.
Most of the new housing in Australia is on the outskirts of major cities, where demand is stronger, he says.
When a new building goes up, there is a lot of demand for the same size of home, so prices tend to rise, but demand is weaker in smaller cities, Zandi says.
And the number in a city is also often influenced by other factors.
While the median has risen dramatically in recent times, there’s still a lot more housing in the market than in the past, Zando says.
That means that we don’t know what the average house price will be for the next 10 years.
And that means that even if house prices fall by 9 per-cent over the next decade, the median will still be higher.