A storm of factors drove property prices in 2023.
From migrations, to low listings and the reverse sea change phenomenon, these factors helped to keep prices high, despite rolling hikes on interest rates and cost of living pressures.
These are the three numbers, drive by the those influences, that shaped the Aussie real estate market this year.
Only one in 10 potential first-home buyers could achieve home ownership after decades of soaring property prices locked most young Australians out of the housing market, new research found.
Most would struggle to save a deposit, meet the mortgage repayments or both following a structural decline in interest rates, years of underbuilding and population growth that pushed property prices higher.
READ MORE: Buyer pays $1.45 million for a sixth of a mansion in Sydney
Efforts by successive governments to help first home buyers have been in vain. Even federal government schemes to buy with a low deposit or co-purchase would still leave many unable to enter the market.
Almost a third of the increase in house prices had been driven by falling interest rates from 1994 to 2017, new research from Australian Housing and Urban Research Institute (AHURI) found.
The opportunity arose for more Aussies to buy a weekender or holiday home.
New data shows the suburbs most affected by a peel back in prices are on or close to the water in Queensland or New South Wales, due what analysts call a "reverse sea change" unfolding in the market. In a couple of cases in the top ten, it is has pushed the median to under $500,000 in lifestyle destinations.
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In Sunshine Beach on the Sunshine Coast, the house price has declined from $3.5 million to $2.38 million – a dip of $1.12 million. In Minyama, also on the Sunshine Coast, the median has descended by $665,000.
National real estate agency Ray White crunched the numbers and found the top ten postcodes where house prices have gone backwards the most over 12 months are North Lismore, Dunbogan, Lismore, Minyama, Sunshine Beach, South Kempsey, Alexandra Headland, Lightening Ridge, Cumbalum and Berry.
The property downturn is well and truly over, with prices recovering to come within $2000 of a new national house record.
To finish 2023, Domain analysts expect the Aussie combined capitals house and unit median prices to be at a new benchmark, and Sydney and Brisbane are anticipated to hit record medians by December.
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It has never been more expensive to buy a home in Adelaide or Perth, which both struck record house prices over the quarter, according to the Domain September 2023 House Price Report.
Rising mortgage rates have prevented price growth from being even greater, Domain chief of economics and research Dr Nicola Powell says.
The report, which covers the previous three months of data to September, shows the combined capitals national median house price is $1,072,480 – just $2000 off a record.
For units, the combined capitals national median has landed at $622,734, which is $5000 short of a record.
Property News: Take a look at this unique waterfront home with a $200,000 price tag.
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