Average home price rises 0.8% to $689k

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on December 08, 2020
Average home price rises 0.8% to $689k

The Australian Bureau of Statistics' (ABS) property price index of the eight capital cities rose over the last quarter, led by Adelaide, which rose 1.6%.

The quarterly rise of 0.8% was hampered only by Melbourne, down 0.3% - the only city to record a fall. 

Melbourne now has an unstratified median house price of $700,000, down from $720,000 last quarter. 

On the year, home prices increased by 4.5% across the capital cities, led by Hobart (up 6%).

The weighted capital cities index now sits at 144.3 - down from the highs of 147.6 seen in December 2017.

Buying a home or looking to refinance? The table below features home loans with some of the lowest variable 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
ZERO APPLICATION FEESFEE FREE OFFSET

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

  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
  • No upfront or ongoing fees
ZERO APPLICATION FEESFEE FREE OFFSET

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

  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
  • No upfront or ongoing fees
FixedMore details
USE A MARKET LEADING APP TO HELP YOU PAY OFF YOUR LOAN SOONER

Fixed Home Loan 1 year (Principal and Interest) (LVR < 80%)

  • Make up to $20,000 additional repayments per fixed term
  • Redraw available – lets you access any extra loan repayments you’ve made
  • Choose to rate lock for 90 days (fee applies)
USE A MARKET LEADING APP TO HELP YOU PAY OFF YOUR LOAN SOONER

Fixed Home Loan 1 year (Principal and Interest) (LVR < 80%)

  • Make up to $20,000 additional repayments per fixed term
  • Redraw available – lets you access any extra loan repayments you’ve made
  • Choose to rate lock for 90 days (fee applies)
VariableMore details
REFINANCE IN MINUTES, NOT WEEKS

Variable Owner Occupied, Principal and Interest (Refinance Only)(LVR <75%)

  • No application or ongoing fees.
  • 100% free offset sub account.
  • Fast online application, approval in minutes not weeks.
  • Mobile app, Visa debit card, Apple and Google Pay
  • Refinance loans and variable rates only.
REFINANCE IN MINUTES, NOT WEEKS

Variable Owner Occupied, Principal and Interest (Refinance Only)(LVR <75%)

  • No application or ongoing fees.
  • 100% free offset sub account.
  • Fast online application, approval in minutes not weeks.
  • Mobile app, Visa debit card, Apple and Google Pay
  • Refinance loans and variable rates only.

Rates correct as of January 24, 2022. View disclaimer.

ABS head of price statistics Andrew Tomadini attributed the price falls in Melbourne to COVID-19 restrictions. 

"Property prices continued to fall in Melbourne in the September quarter ... Melbourne house prices fell 0.3% and attached dwelling prices fell 0.2%," he said.

"Residential property transactions rose in a number of capital cities in the September quarter 2020. Substantial increases were observed in Sydney and Brisbane." 

Lending data indicates the average home loan written in October was more than $566,000, with the value of new loan commitments up 0.7% in seasonally-adjusted terms.

Since September 2011, mean prices have risen 40.5% from $490,800 to $689,500, yet the ABS' wage price index has risen just 25.1% - though the Reserve Bank cash rate was 4.75% in September 2011.

Across the states, New South Wales has the highest mean price of residential dwellings at $888,900 - the lowest mean price is the Northern Territory at $425,200. 

The number of residential dwellings rose by 44,000 Australia-wide in the quarter, yet the mean residential dwelling price rose $5,400. 

Assuming a borrower had a 20% deposit on the mean price ($137,900), mortgage repayments would be $2,211 per month, using MoneySmart's average mortgage rate of 2.61% p.a. over a 30-year home loan.

This is just below the 30% 'mortgage stress' indicator using the ABS' average full time wage earnings. 


Photo by Yashi Wang 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. 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. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please visit the web site links at the bottom of this page.

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Harrison is Savings.com.au's Assistant Editor. Prior to joining Savings in January 2020, he worked for some of Australia's largest comparison sites and media organisations. With a keen interest in the economy, housing policy, and personal finance, Harrison is passionate about breaking down complex financial topics for the everyday consumer.

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