Unless help is granted to our younger generations, the property market will split down the middle and turn the wheel on the long-term trend of home ownership.
Despite lacklustre moves in recent median figures, RP Data recorded a bountiful 17.2 per cent rise in Australia’s residential median since the final quarter of 2008 and the second quarter of 2010. Along with this, other stats collected by RP Data for the same time period show a dramatic decrease in the number of properties selling below $500,000. In 2008 a little over 73 per cent of Melbourne sales were priced below $500,000, however during the second quarter of 2010 this figure dropped nearly 20 per cent to just over 55 per cent. Results were similar across all Australian capital cities and it wouldn’t take much of a jump to assume affordable opportunities were fast disappearing.
In essence the results have much more to do with compositional changes in the market initiated by the first homebuyer boost at the end of 2008. However they present a very interesting insight into first homebuyer trends and an impeding property ownership crisis which needs to be addressed immediately.