Job vs house flipping
On the tail of the latest news from Core Logic that states that affordability constraints appear to be slowing down the property boom, this month, citing ATO figures, Domain published an interesting article that discussed how some homes have effectively earned more than highly paid psychiatrists, CEOs and surgeons in the last quarter. The Sydney median house price spiked to $1.4million over the period, which breaks down to a greater jump than some of the top paid professions earned in that time. If this were to continue, perhaps more people would be quitting their jobs to start house flipping!
It’s not just houses either. In another article, Domain discusses how ‘pockets’ of the unit market are starting to get dragged along by the house market’s upward spiral towards 2017’s record highs. Although, according to their own information, nearly half of Sydney’s unit market is still trending downwards to some extent, but the areas where it is really taking off (Inner West, Eastern Suburbs and most of the northern suburbs including the Central Coast), it is really taking off: Quarterly rises in unit prices of 5.4% in the Inner west, to 13.9% on the Northern Beaches.
ANZ are expecting house prices to gain another 20% nationally this year, with a 23% rise in both Sydney and Hobart. NAB is a little more conservative, predicting 18.5% in 2021, and a much reduced 3.6% in 2022. According to the article, Sydney prices continue to climb despite the lockdown, and now into Spring and the possibility of freedom over the next month or so, likely will see the trend continue. In fact, CBA apparently suggests that housing market momentum would only be really slowed by a rise in interest rates.