Property prices may go up or down in the short-term, but history suggests they increase in the long-term.
That’s the key takeaway from a CoreLogic analysis of property prices over the 30 years to July 2022.
Australia’s median property price increased 382% during that 30-year period. Houses outperformed units (453% v 307%) and metro locations outperformed regional locations (409% v 294%).
Crucially, property prices didn’t grow so strongly because there were never any downturns; they grew strongly despite regular downturns along the way.
“Over that 30-year period, we have seen six distinct cycles of growth and an equal number of cycles of decline (including the current downswing) across the national index,” according to CoreLogic.
“Each of the upswings and downturns have been characterised by different environments and catalysts of change such as taxation policy, monetary policy decisions, economic shocks, fiscal stimulus and broader economic conditions.”
While past performance is no guarantee of future performance, history suggests that homeowners who purchase quality properties and hold them for the long-term enjoy a significant increase in property prices.
With that in mind, buyers are also enjoying more choice as listing numbers rise according to a PropTrack report.