The 2019-20 financial year is expected to see fewer property sales coming in under $400,000 than what was recorded in the 2018-19 financial year, according to a research analyst.
CoreLogic Property Pulse’s Cameron Kusher has said that the next financial year “could look very different to what we have seen over the 2018-19 financial year”.
The analysis comes after data revealed that during the 2018-19 financial year, more than a quarter (26 per cent) of all houses sold nationally were under $400,000, while nearly one-third (32.5 per cent) of all unit sales were under $400,000.
Despite a weakening housing market, the figures show that the share of house sales under the $400,000 benchmark “was virtually unchanged from a year ago” when it sat at 26.3 per cent.
In contrast, the number of units selling for under that price increased by 15 basis points, after sitting at 31 per cent for the 2017-18 financial year.
According to Mr Kusher, it’s not likely we’ll see similar results from the current financial year.
“We’re only in mid-August and we’ve already seen interest rates reduced twice, serviceability floors on mortgages reduced and some recent rises in dwelling values in the largest capital cities,” he has observed.
While a “significant rise in dwelling values isn’t expected, there is an expectation of a moderate increase in dwelling values” Mr Kusher foreshadowed.
In-depth data
Nationwide, 26 per cent of all houses sold were under the $400,000 mark, while 32.5 per cent of all unit sales were, too.
Homing in on the capital cities, just 13.9 per cent of house sales in the 2018-19 period were priced at under $400,000, and just under a quarter of units (24.6 per cent) recorded the same price point.
Compared with the previous financial year’s data, the share of house sales was “virtually unchanged” after sitting at 13.8 per cent, while the share of unit sales was lower at 22.3 per cent.
The analysis considered that “despite house and unit values falling -8.7 per cent and -5.9 per cent respectively over the year, it is interesting to note that the share of unit sales under $400,000 has increased much more for units than houses.
Regionally, the availability of homes under the $400,000 was much higher when compared to the capital city statistics, but had recorded a much stronger decline in availability in previous years.
Over the financial year, 42.8 per cent of all house sales and 54.3 per cent of unit sales were registered as under $400,000.
“Unlike the combined capital cities, the combined regional markets have seen the share of sales under $400,000 record a sizeable decline compared to the previous financial year when 44.1 per cent of house sales and 55.6 per cent of unit sales were below $400,000,” the analysis had outlined.
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