Median house prices reach record-high of almost $900k in March quarter

author-avatar By on April 29, 2021
Median house prices reach record-high of almost $900k in March quarter

National median house prices saw their steepest quarterly increase in almost 18 years in the March quarter, according to the Domain House Price Report.

Median house prices reached a new record high $899,509, up 5.7% from the previous quarter, and house prices in every capital city except Perth and Darwin hit record highs in the three months to 31 March. 

This is the first time Domain has reported that house prices have risen simultaneously for two consecutive quarters since 2009, after the Global Financial Crisis (GFC).

It also follows recent research from CoreLogic which found March was the strongest month for house price growth in 32 years, reaching a quarterly growth rate of 5.8%. 


Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Lender
Advertised rate Comparison rate Monthly repayment Rate TypeOffsetRedrawOngoing FeeUpfront FeesLVRLump Sum RepaymentAdditional RepaymentsPre-approval

VariableMore details
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
VariableMore details
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
VariableMore details
REFINANCE IN MINUTES, NOT WEEKS

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • Refinance only. Fast online application
  • No Nano fees. Free 100% offset sub account
  • Mobile app, Visa debit card & instant payments
REFINANCE IN MINUTES, NOT WEEKS

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • Refinance only. Fast online application
  • No Nano fees. Free 100% offset sub account
  • Mobile app, Visa debit card & instant payments
VariableMore details
YOU COULD WIN $100k TO PAY DOWN YOUR LOAN*

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • For a chance to win $100K towards your home loan, apply with Athena before Oct 31 & be approved by Dec 15
  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
YOU COULD WIN $100k TO PAY DOWN YOUR LOAN*

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • For a chance to win $100K towards your home loan, apply with Athena before Oct 31 & be approved by Dec 15
  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
VariableMore details
AN EASY ONLINE APPLICATION

Yard Home Loan (Principal and Interest) (Special) (LVR < 70%)

  • Unlimited additional repayments
  • Unlimited free redraws
  • Optional 100% offset can be added for $120 p.a.^
AN EASY ONLINE APPLICATION

Yard Home Loan (Principal and Interest) (Special) (LVR < 70%)

  • Unlimited additional repayments
  • Unlimited free redraws
  • Optional 100% offset can be added for $120 p.a.^

Rates correct as of October 26, 2021. View disclaimer.

National median unit prices were up 1.7% quarter on quarter to $584,340, and now sit just above their previous 2017 peak. 

Domain senior research analyst Dr Nicola Powell said dwelling values had now recovered any losses incurred in the last four years. 

"The 8% drop from mid-2017 to early 2019, as well as the 2.1% COVID decline mid-2020, have now been recouped," Dr Powell said.

"Record low interest rates, improved household savings, low listing volumes, post-lockdown lifestyle changes, consumer sentiment roaring to an 11-year high, returning cashed-up expats and government incentives have fuelled demand for housing and a strong market performance.

Dhprmar201.jpg

"It is the first time in a year that price growth across the combined capital cities has outperformed regional areas." 

Sydney and Melbourne recorded their fastest median house price increases in nearly 30 years, up 8.5% and 4.8% respectively. 

According to Dr Powell, owner-occupiers had been the driving force behind the growth, but the market is forecast to slow over the year. 

"This rapid quarterly growth isn’t likely to continue. Prices will still grow but it is unlikely to stay at such sustained growth rates over each quarter," she said. 

Previously affordable locations see exponential growth 

Property markets in South-east Queensland surged in popularity through COVID, and the March 2021 quarter was no exception.

Brisbane, the Gold Coast, and the Sunshine Coast were all standout performers, with house prices hitting record highs in each location. 

"Changed lifestyle preferences post-lockdown and the option of remote working has driven demand to south-east Queensland as buyers are drawn by affordability, liveability, climate and greater value for money,” Dr Powell said. 

Dhprmar202.jpg

Elsewhere, Adelaide also saw record-high house prices, with sale transactions at their highest level since 2007. 

An end to eviction moratoriums is likely to increase investor activity, according to Dr Powell. 

"Adelaide has always largely been an owner-occupier driven market, therefore less exposed to the retreat of investors," she said. 

"That said, investors are starting to return, and the lower purchasing price, tight rental market and ending of the rental moratorium could draw more investment activity to South Australia."

In the nation's capital, Canberra house prices breached $900,000 for the first time.

Hobart house prices breached $600,000, also for the first time. 

Perth and Darwin, the only two capitals to not record new record-highs for house prices, still saw prices hit their highest point in five years and four years respectively. 

Dr Powell said Perth and Darwin benefitted from lower prices compared to the rest of the country, which could appeal to owner-occupiers and investors. 

“Record low home loan rates, generous government incentives, improved consumer sentiment has boosted buyer confidence - the same factors supporting market activity across all capital cities," she said. 

"Setting Perth apart is the affordability factor, with homeowners aware prices are below peak but rising, creating pressure to purchase before they accelerate too far." 


Photo by Ivan Tsaregorodtsev on Unsplash

Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered which includes retail products from at least the big four banks, the top 10 customer-owned institutions and Australia’s larger non-banks:

  • The big four banks are: ANZ, CBA, NAB and Westpac
  • The top 10 customer-owned Institutions are the ten largest mutual banks, credit unions and building societies in Australia, ranked by assets under management in November 2020. They are (in descending order): Great Southern Bank, Newcastle Permanent, Heritage Bank, Peoples’ Choice Credit Union, Teachers Mutual Bank, Greater Bank, IMB Bank, Beyond Bank, Bank Australia and P&N Bank.
  • The larger non-bank lenders are those who (in 2020) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.
  • If you click on a product link and you are referred to a Product or Service Provider’s web page, it is highly likely that a commercial relationship exists between that Product or Service Provider and Savings.com.au

Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site.

In the interests of full disclosure, Savings.com.au, Performance Drive and Loans.com.au are part of the Firstmac Group. To read about how Savings.com.au manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.

*Comparison rate is based on a loan of $150,000 over a term of 25 years. Please note the comparison rate only applies to the examples given. Different loan amounts and terms will result in different comparison rates. Costs such as redraw fees and costs savings, such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

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author-avatar
Alex joined Savings.com.au as a finance journalist in 2019. He enjoys covering in-depth economical releases and breaking down how they might affect the everyday punter. He is passionate about providing Australians with the information and tools needed to make them financially stable for their futures.

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