The circa 20 per cent jump in house prices pulled the median house price from $1.01 million last year to the current $1.22 million.
There is a consensus among housing experts that this extreme level of growth is unsustainable and the current boom will eventually run out of puff.
There have already been reports from agents of buyers becoming “fatigued” in some areas, with many dropping out of the market because prices have gone past their budgets.
Listings, while down in overall terms, have also begun to climb in some of the areas where prices had been growing the fastest.
The increase in listings has meant buyers have more choice and are not under as much pressure to bid up prices to beat their competition as they were earlier this year.
Buyers currently outnumber sellers and auctions, before lockdown, were attracting big crowds.Source:News Corp Australia
Australia’s largest property research group CoreLogic noted earlier this week that affordability constraints and the potential for tighter lending conditions were the “primary headwinds” for the property market.
“Even without recent developments of COVID-19 in Australia, it is clear that the housing market is losing momentum as affordability constraints build,” CoreLogic reported.
“More expensive credit, or credit that is harder to obtain, could further shift market dynamics.”
CoreLogic further noted that a sooner-than-expected uplift in the cash rate would bring forward mortgage rate rises, and reduce demand for credit.
“There have been early signs of more conservative home loan assessments,” the group said. “Any reduction in credit availability is likely to contribute to a downside shift in market conditions.”
SQM Research director Louis Christopher, who did not participate in the Finder survey, said buyers currently outnumber sellers but these conditions would ease.
“We note the current pace of the housing market is not sustainable over the long term,” Mr Christopher said.
“And we also note the current worldwide housing boom, strongly suggesting this strong upturn in Australia has been driven largely by ultra-low interest rates and easier lending standards.
“In time, there will be a change in these monetary settings which will trigger a downturn.”
Originally published asHousing boom near peak, experts warn