{"id":32551,"date":"2021-05-27T10:40:13","date_gmt":"2021-05-26T22:40:13","guid":{"rendered":"https:\/\/propertynoise.co.nz\/au\/?p=32551"},"modified":"2021-05-27T10:40:13","modified_gmt":"2021-05-26T22:40:13","slug":"australian-house-prices-could-rise-10-times-as-fast-as-wages-in-2021","status":"publish","type":"post","link":"https:\/\/propertynoise.co.nz\/au\/australian-house-prices-could-rise-10-times-as-fast-as-wages-in-2021\/","title":{"rendered":"Australian house prices could rise 10 times as fast as wages in 2021"},"content":{"rendered":"

PHOTO: Economists believe the governments are making it harder for hopeful home owners to get into the market.\u00a0Photo:\u00a0Peter Rae<\/span><\/strong><\/p>\n

House prices could rise more than 10 times faster than wages this year, with a top economist warning that the improving jobs market will make little difference to modest income earners trying to save a house deposit.<\/p>\n

And experts warn that government grants to home buyers and tax incentives for investors will only make it harder for some to buy a home.<\/p>\n

\n
\n

WE DON\u2019T ROAST OUR BEANS UNTIL WE HAVE YOUR ORDER<\/span><\/h3>\n

\"Fergs<\/a><\/div>\n<\/div>\n

The odds are stacked against lawmakers\u2019 attempts to improve the cost of housing, with the millions of home-owning households \u2013 who do not wish to see the value of their asset fall \u2013 dwarfing the roughly 100,000 first-home buyers every year.<\/p>\n

Australia\u2019s job market has improved since the depths of the pandemic recession, with the unemployment rate dropping 0.2 percentage points to 5.5 per cent in April, on ABS figures released last week.<\/p>\n

Wages edged up 0.6 per cent in the March quarter,\u00a0tracking at an annual growth rate of 1.5 per cent.<\/p>\n

But with house prices growing more than eight times that pace in the same period alone, Shane Oliver, chief economist of AMP Capital, said it does not come close to helping aspirational home owners into the market.<\/p>\n

\u201cIt hardly makes any difference. House prices are up 8 per cent already this year based on CoreLogic numbers. There\u2019s another 2 per cent coming in May alone,\u201d Dr Oliver said. \u201cAs this year settles down, we\u2019re going to see house price growth at 15 or 20 per cent in some cities.\u201d<\/p>\n

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

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