For the first time in three years, Australian real estate median prices have seen a downfall, giving homebuyers an opportunity to buy their dream home in their desired location.
Though the fall has been recorded to a mere 0.4 percent, the effect of the lower real estate price percentage has made the average median house price at $695,788, less$2,700 than before. The Real Estate Institute of Australia stated that the most surprising data is the recorded low in median home prices after 13 consecutive quarters of ascent in the average median house price.
Real Estate Institute of Australia President Neville Sanders confirmed that the recorded price flow in the December quarter has shown stability in the market. “It (the result) is indicative of a stabilisation of the market,” he said as quoted by News.com.au. “It is evening out, there is no lack of confidence out there. Different sectors of Australia are producing different results for various economic reasons. Some of the smaller states that have been struggling a bit are starting to see a lift in prices and activity.’’
According to Sanders, Hobart, Brisbane, and Canberra have seen a strong market, while Darwin and Perth have witnessed marginal growth and could hardly outweigh the falling home prices in Melbourne and Sydney. The president claimed that Sydney has been the strongest real estate market for quite a few years, which showed the biggest decrease in median house prices. This prompted analysts and commentators to wonder if the housing market in the city has reached its “peak” following the fall of Sydney’s median house prices by 2.5 percent in the last quarter of 2015. On the other hand, there was no change during the quarter for Adelaide.
According to Sanders, the annual growth of the property market is still strong but lower than that observed in the past couple of years. The Guardian reported that the median house prices in the main Australian cities have increased by 7.4 percent, which is more than the 2014 December quarter record when the market saw growth except that in Perth.