Home sales under $400,000 were unaltered from a year ago, according to new data from CoreLogic.
Throughout the 2018-19 financial year, 26% of all houses sold nationally were under $400,000, dropping 0.3% from the previous year. Meanwhile, 32.5% of all unit sales were below $400,000—up 1.5% from a year ago, the data showed.
Across the combined capital cities, 13.9% of house sales and 24.6% of unit sales over the financial year were below $400,000.
The share of house sales under $400,000 was virtually unchanged from the previous year, sitting at 13.8%, while the share of unit sales was noticeably lower at 22.3%, according to CoreLogic.
“Despite house and unit values falling -8.7% and -5.9%, respectively, over the year, it is interesting to note that the share of unit sales under $400,000 has increased much more for units than houses,” said CoreLogic Senior Research Analyst Cameron Kusher.
Across the combined regional markets, 42.8% of all home sales over the past year and 54.3% of all unit sales were below $400,000, according to the data. Combined regional market sales declined from the previous year, when 44.1% of home sales and 55.6% of unit sales were below $400,000.
The next financial year could look very different, Kusher said.
“We’re only in mid-August and we’ve already seen interest rates reduced twice, serviceability floors on mortgages reduced, and some recent rises in dwelling values in the largest capital cities. While a significant rise in dwelling values isn’t expected, there is an expectation of a moderate increase in dwelling values. As a result, the 2019-20 financial year is expected to see fewer sales under $400,000, than those recorded in 2018-19,” he said.
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