If you are looking to break into the housing market and just want to upgrade, it might be about to get that much harder. Rising housing prices are causing more Australians to avoid moving, new figures from a Commonwealth Bank housing study revealing only 44% of Australian households moved within the past five years compared to 73% in 1999.
Those more likely to have moved were renters, at 85%, with only 15% of homeowners without a mortgage moving and only 42% of those with a mortgage.
CommSec chief economist and report author Craig James said the study also reveals that for 75% of people, housing costs are “keeping them in their existing homes for longer”.
“Recently a gamut of data has highlighted the need for state and territory governments to address issues of housing supply and housing costs. This is just more evidence to show that governments aren’t doing enough to address housing issues in Australia.
In an “economy-wide sense, it means less work for builders and real estate agents, and perhaps fewer mortgages to be provided by banks”.
Australian Property Monitors economist Matthew Bell also says the figures reveal the market is suffering due to a lack of supply.
“I would think that part of this effect would be driven by the fact that housing supply hasn’t been keeping up with housing demand (driven by strong population growth including strong immigration), and the realisation that simply selling your current house may mean a struggle to find a new property to live in at a reasonable price in a tight market.”
But James also said that while more Australians are fearful of housing costs, many are “happy with where they are living… in fact more than 90% of homebuyers and homeowners are more than satisfied with where they are currently living”.
Meanwhile, auction results have remained strong over the weekend in the lead-up to Christmas. Bell says the results in Sydney and Melbourne “indicate a healthy market”.
In Melbourne, Real Estate Institute of Victoria chief executive Enzo Raimondo said in a statement the number of properties up for auction is growing, and that buyers should keep an eye out.
“This time represents the best opportunity for buyers to find a home, with just over 3,000 properties already scheduled to go under the hammer. Next weekend has a record number of auctions scheduled for 2009.”
Over the weekend, there were 735 auctions reported with 593 sold, resulting in a clearance rate of 81%. Total sales reached $445 million.
In Sydney, 262 properties were put up for auction with 197 sold, with a clearance rate of 71%. The total value of properties sold reached $155 million.
In Brisbane, 10 properties were sold out of 21 on the market, with a clearance rate of 43%. Adelaide saw a clearance rate of 58%, with 11 properties sold out of 18 on the market. Sales reached $4.2 million.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
