With housing affordability at its best level in a decade or so and finance pre-approvals up compared to last year Joye concludes:
It is hard to imagine how these circumstances will not stimulate hearty asset price inflation.
According to APM’s monthly index, Sydney and Melbourne prices have appreciated at annual rates of 6 per cent and 7 per cent respectively since June 2012. RP Data offers a similar picture with monthly dwelling values in Sydney and Melbourne rising at a 7 and 6 per cent annualised clip from their depths in May 2012.
The Australian Bureau of Statistics index, which ignores the apartment market and is only calculated on a quarterly basis, shows that free-standing house prices in Sydney and Melbourne have inflated at more modest rates.
The bottom line, all three measures broadly tell the same story: home values were increasing in the second half of 2012.
Joye provides the following 2 graphs which show how the various state property markets have performed over the last 5 years and how housing affordability is the best it’s been in almost a decade.
In the article Joye explains how momentum is building and concludes “It is hard to imagine how these circumstances will not stimulate hearty asset price inflation.”
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