How to buy a home in Australia for $2,400
From $2.1 million to $2 million in Australian house prices are expected to jump by 20 per cent next year, according to a new report.
The average price for a one-bedroom apartment in Sydney jumped by $1,350 in the year to March, while the median price for detached houses jumped by nearly $700.
The Australian Competition and Consumer Commission (ACCC) has warned that the country’s housing market is headed towards a “severe correction”.
The ABS has also warned that house prices in Australia are likely to fall for several years.
In a statement, ACCC chairman Rod Sims said that the “most severe downturn” in Australia’s housing markets since the global financial crisis would occur within five years.
“In the short term, the sharp rise in prices, combined with continued negative outlooks from the Reserve Bank and the Bureau of Statistics, will continue to put downward pressure on house prices,” Mr Sims said.
The ACCC said it expected house prices to rise by more than 20 per in the next five years, but this was driven by rising demand for apartments and the introduction of superannuation funds.
“It is forecast that demand for housing will increase from the current 5.1 per cent of the national economy to over 10 per cent by 2020,” it said.
“The ACCC is urging investors to take a long-term view and consider the long-run economic outlook and to consider the effects of the recent global financial shock on Australia’s financial system.”
In the US, the median home price jumped more than $500,000 in the second quarter of this year, as the housing market in the nation’s second-largest city saw a steep drop in demand, a sign that the recovery is more fragile than many people had hoped.
The median price of a detached house in San Francisco fell by more $1.3 million, according the latest figures released by the city’s real estate office.
It is expected to rise in the coming months as more and more residents move away from the city.
The number of people living in the city dropped by more 25,000 to 9.9 million between March and June, according official data released on Wednesday.
In Brisbane, home prices in the suburb dropped by $842,000 between March 20 and June 9.
In Sydney, median house prices dropped by almost $500 million over the same period.
It was the worst fall in the state’s housing prices since August 2013, according data released by ACAC on Thursday.
The latest figures showed that the median house price in Sydney rose by $734,000, but that was still down by more the previous three months.
“Over the past year, we’ve seen a number of negative trends in the market and, at the same time, we have seen some very positive developments in the housing industry,” Mr Sim said.