SYDNEY (CU)_Residential property prices in Australia have been on an upward trend over the recent past, with ultra-low interest rates and billions of dollars in government stimulus pushed property prices to record highs. Data released by CoreLogic earlier this week shows that the median value of national dwellings inched by 1.5 per cent last month, bringing the national price growth rate over the past year to a whopping 21.6 per cent.
Nevertheless, the property analyst insists that the red-hot property market is slowly losing momentum and the peak of the current cycle is not far off. “Housing prices continue to outpace wages by a ratio of about 12:1,” Tim Lawless, the Research Director of CoreLogic’s Asia Pacific research division, said. “This is one of the reasons why first home buyers are becoming a progressively smaller component of housing demand.”
Other factors which have contributed to this state of affairs include…
