Over the past 25 years, median Australian house prices have risen dramatically – from just over $200,000 to around $1.1 million – putting a home out of reach for many. That’s the affordability crisis the federal government is trying to tackle, belatedly, with its tax changes.
Again this weekend, auction clearance rates were among the lowest levels since COVID slammed the market in 2020.
Yet as house prices have softened, initially triggered by the Reserve Bank’s first rate hike in February, there’s been an avalanche of headlines bemoaning the small decline and claiming it will tank the economy.
As experts Alan Duncan and
Steven Rowley explain, fears of a broader economic slowdown are overblown. A cooler housing market will help first home buyers, and should give pause to those who measure the success of Australia’s housing system on price alone.