Property values ??down 8.4% since 2017

The nearly two-year drop in prices temporarily relieved many buyers of the Australian dream. However, the countdown has begun and prices could soon reach new records, according to the latest study by ANZ and CoreLogic.

The value of residential properties declined 8.4% nationally between the peak of 2017 and the trough of June 2019. In addition, the value of national dwellings was only 6, 5 times higher than the annual gross household income, its lowest level since December 2013.

However, with the rate of price increase, it seems that the affordability of housing has already peaked.

Record interest rates, easier access to credit, and certainty around a negative tax on credit spreads and capital gains led to a rebound in prices, said Felicity Emmet , chief economist at ANZ.

"Although affordability has improved as a result of declining housing values, however, June 2019 marked a turning point as housing values ??once again outpaced household incomes in capital cities. except for Perth and Darwin, "she said.

Read also: Sydney and Melbourne on the rebound?

Houses in Sydney and Melbourne have seen price growth of up to 6% since May. If the current trend continues, real estate prices could reach new heights as early as the first half of next year, said Tim Lawless, head of research at CoreLogic.

"However, potential buyers and tenants still have good news, and research shows that households now spend the smallest proportion of their income on a new mortgage since the beginning of 2004 and that tenants spend the lowest proportion of their housing income since 2007, "he said.

The Moody's Investors Service said in a separate analysis that housing affordability could begin to deteriorate by next year.

"We expect housing affordability to deteriorate in 2020 as housing prices continue to rise, and the risk of default and default on new mortgages will increase. that affordability will deteriorate, "said Alena Chen, senior analyst at Moody's Investor Service.

But, at the present time, price increases seem to have had a limited impact on housing affordability, according to a recent report from the Housing Industry Association. In fact, the Australian housing market seems to have reached its most affordable level in more than five years, despite the rebound in prices recorded in recent months.

Top suburbs:

West Rockhampton

,

Toowong

,

Coorparoo

,

Campsie

,

Darlington

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