Factors Affecting the Housing Market in Australia

Description

In the last few decades, house prices in Australia have risen significantly faster than average household incomes. Most of the increase in real house prices occurred during the late 1980s boom and the subsequent boom in the late 1990s.

In a recent report by CoreLogic, the residential market in Australia is worth $9 trillion. The data documents that during the June quarter, over 91% of property resales recorded phenomenal profit-making gain over their purchase price. This increase is the highest level achieved in over a decade. The increase in property values across most of the housing markets over the past year has been driven by factors like all-time low-interest rates, low supply-high demand, and government support. The housing demand has increased because of returning citizens, border closures, and reverse migration.

During this Covid-19 pandemic, the government has implemented measures to protect jobs and incomes. BIS Oxford Economics’ report on the Australian housing outlook and forecasts highlight that after a downturn, the housing market in Australia has bounced back owing to supportive factors like low-interest rates, increased savings, changing household preferences, and government stimulus measures. Although, there has definitely been an adverse impact on the commencement and completion of approved building project delivery timelines because of the short supply of material and labour. This report is based on data sourced from agencies like the Australian Bureau of Statistics (ABS), the Department of Educations, Skills and Employment, the Real Estate Institute of Australia, and the Consumer Price Index (CPI). The report takes into consideration factors like population growth, migration, new dwelling approvals, employment growth and unemployment rates, lending approvals, vacancy rates, rental growth, median prices, and price growth.

This course aims to throw light on the factors that affect the house prices, and the housing market sentiment over the past years. 

Estimated Time To Complete

Learning Outcomes

By the end of this course, learners will be able to

• List the factors affecting the housing market.
• Describe the impact of foreign investments and governmental measures on housing prices and the macroeconomy.
• Gain an understanding of the current housing market trends and sentiment.