Australia COVID: How COVID-19 changed Australia’s housing market

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No-one saw the pandemic coming, let alone its extraordinary impact on Australia’s housing market, which will be felt for years to come.

The COVID-19 housing boom may have peaked in most parts of Australia but analyst CoreLogic has identified six “remarkable” shifts caused by the pandemic over the past two years that will have a long-term impact on national property markets.

. According to CoreLogic’s Home Value Index, home values across Australia leaped 25 per cent to record highs in the two years to the end of February.The median national dwelling value increased $174,000 to $728,000 over the same period.payments, fired up the market in 2021, mirroring what happened a decade before when the First Homeowner grant was temporarily boosted in 2009-10.

Conversely, gross yields for investors fell to a record low of 3.21 per cent as purchase prices increased at a faster rate. The median national rent is now $470 a week.“As housing growth has started to slow, this record low gross rent yield figure appears to have begun stabilising,” CoreLogic said. The ratio of housing debt to household income reached 140.5 per cent in the second half of 2021. Home loan volumes are still exceptionally high, with new loan commitments totalling $33.7 billion in January.

 

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Many have loaded up debt basis to their eye balls basis cheap money ( low interest) without thinking ot taking responsibility for what they have done, now they will all start complaining about interest rates going up and not accepting the fact they actually made these choices.

And toilet paper!

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