Nation-wide our home values are continuing to rise, which is reducing the number of properties available at the lower end of the market for under $400,000.
Over the 12 months to June 2016, 33.1% of all houses and 40.6% of all units sold, transacted at a price point below $400,000. These proportions have fallen from 34.8% and 44.1% respectively at the same time a year earlier. The proportion of house sales under $400,000 nationally is at a record low while the proportion of unit sales is at close to an historic low.
Turning the focus to the combined capital cities shows that less than 1 in 5 houses (19.1%) and less than 1 in 3 units (31.0%) sold over the year to June 2016 for under $400,000.
In June 2015, the proportion of sales under $400,000 was greater at 21.3% for houses and 31.9% for units.
Regional markets are characterised as having homes transacting at substantially lower prices than the capital cities.
Across the combined regional markets, 54.6% of houses and 65.4% of units that sold over the 12 months to June 2016 sold for less than $400,000.
Whilst the proportion of sales under $400,000 was at a record low for houses and units, both houses and units were more than twice as likely to transact for less than $400,000 than they were across the combined capital cities.
The table included in the report shows the proportion of total home sales under $400,000 over the 12 months to June 2016 and 10 and 20 years earlier.
What the table highlights very clearly is that over the decade to June 2006 there was a substantial decline in home sales under $400,000 with the decline continuing over the following 10 years.
Hobart is the only city in which more house sales occurred for less than $400,000 than above the price point over the past year.
For units, only Adelaide and Hobart had more sales below $400,000 than those above.
These figures highlight the decline in sales across more affordable price points, particularly across the capital city housing markets.
With values continuing to rise it is a fairly safe bet that there will continue to be a decline in the number of homes selling for less than $400,000.
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