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House prices double in the last decade

April 19, 2011

According to data released by the Real Estate Institute of Australia (REIA) Australia’s median house price has doubled since 2000.

REIA figures show the median house price in July 2000, the year the First Home Owner’s Grant was introduced, was $220,443 compared to $545,873 in the quarter to December 2010.

The report also states that from October 2009 to February 2011, the number of Home Loans issued to buyers decreased by 32 percent, while the participation of first home buyers dropped to 14.9 percent, the lowest since August 2004. The Federal Government reduced the FHOG grant from $14,000 to $7,000 in 2004.

Australian Bureau of Statistics figures reveal that first-home buyers made up 15 per cent of NSW loans in the three months to January, down from 21 per cent a year earlier. The defection of first home buyers purchasing their first mortgagee can also be attributed to poor housing availability and an impending interest rate rise.

Established house price increase Dec 2009 – Dec 2010: weighted average of capital cities