{"id":30375,"date":"2021-01-29T18:31:58","date_gmt":"2021-01-29T05:31:58","guid":{"rendered":"https:\/\/propertynoise.co.nz\/au\/?p=30375"},"modified":"2021-01-29T18:31:58","modified_gmt":"2021-01-29T05:31:58","slug":"why-are-australian-home-prices-rising-again-and-can-it-last","status":"publish","type":"post","link":"https:\/\/propertynoise.co.nz\/au\/why-are-australian-home-prices-rising-again-and-can-it-last\/","title":{"rendered":"Why are Australian home prices rising again and can it last?"},"content":{"rendered":"

PHOTO: Australian house prices<\/strong><\/p>\n

Don\u2019t values drop when there\u2019s a recession? What\u2019s going on \u2013 and can the rise continue?<\/p>\n

\n

Australia\u2019s Teflon-coated property market<\/a> appears to have proved itself again. Despite the country\u2019s first recession in nearly three decades, Aussie home values \u2013 including houses and apartments \u2013 ended 2020 a solid 3 per cent higher, according to CoreLogic data.<\/p>\n

According to another report, the Domain House Price index released on January 28, the nation\u2019s median detached house price hit a record high of $852,940 in the December quarter. Sydney\u2019s median house price tapped $1,211,488 \u2013 a record peak \u2013 and Melbourne\u2019s hit $936,073.<\/p>\n

All this, despite the steepest decline in population growth in decades thanks to international border closures \u2013 something that should, in theory, reduce demand for housing.<\/p>\n

Nationally, many punters are now tipping double-digit property price gains ahead. Westpac economists are banking on a 15 per cent boom in prices over the two years starting this December quarter.<\/p>\n

But don\u2019t values drop when there\u2019s a recession? What\u2019s going on \u2013 and can it last?<\/p>\n

Shouldn\u2019t home values fall during a recession?<\/strong><\/h3>\n

You would think so \u2013 and history would be on your side. During the early 1990s recession, amid double-digit joblessness and high interest rates, home values in Sydney and Melbourne sank by about 10 per cent. Prices recovered within a few years in Sydney, but Melbourne took until about 1997 to fully recover losses.<\/p>\n<\/div>\n

\n

Normally, you\u2019d expect recessions would lead to mass job losses, forcing some borrowers into a fire sale of their family homes, depressing home values.<\/p>\n

But this has been a recession like no other.<\/p>\n<\/div>\n

READ MORE VIA SMH<\/a><\/p>\n

MOST POPULAR<\/span><\/h3>\n