CHART OF THE DAY: Australian Housing Is Creeping Out Of The Affordable Range

A great chart from RP Data which shows the stratification of Australian property sales.

On the face of it we have the fact that research by Cameron Kusher of RP data finds that in the capital cities, two out of every three properties sold were for less than $600,000 (68.8%), while in the non-capital markets, nine out of every ten properties sold transacted for below that price point should be encouraging given many families have two breadwinners.

Source: RP Data

But Mr Kusher said that there is a gradual creep higher in Australia property prices and out of the range that might be considered affordable. His analysis of the Capital through time shows
significant decline in the proportion of homes selling at more affordable price points, where over the 12 months to August 1995, 95.4 per cent of all capital city home sales were below $400,000.

What is affordable is a question of income, interest rates and other factors, but the undeniable fact is that housing just keeps getting more expensive.

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