Australia’s housing market has been one of the world’s hottest over the past 18 months.
The Australian Bureau of Statistics’ house price index reveals, very precisely, the rise in the value of privately-owned housing stock in Australia.
It shows that last year the value of Australian homes rose $A387,854,000,000.
Don’t adjust your monitor. You read it right: nearly $A388 billion.
It’s a phenomenal amount, particularly when you break it down into smaller increments of time.
On average, every day last year, the value of Australia’s housing market increased by $A1,062,613,699. That equates to $A44,275,571 every hour, $A737,926 every minute and, almost incredibly, $A12,299 per second. Big numbers!
This chart shows the change in total increase in the value of privately-owned housing stock for each State and Territory in 2014. NSW, home to Sydney’s red-hot property market, led the overwhelming majority of gains with an increase of nearly $A225 billion. That’s 58% of the total national increase.
While higher house prices don’t benefit all households, it’s clear a lot of paper wealth has been generated in just 12 months. Even if not realised, many households should be feeling better off financially than they did just a few years ago, particularly given a corresponding gain in stocks.
If concerns about the economy and labour market dissipate – two factors many believe are holding back household spending at present – the subsequent boost to consumption will be breathtaking to watch.