House sales un­der $400k lead the way

Port Douglas & Mossman Gazette - - FRONT PAGE -

THE price point for most sales in 2012 was un­der $ 400,000, ac­cord­ing to fig­ures pro­vided by RP Data.

Sales data for the 2012 cal­en­dar year in­di­cates that 47.4 per cent of all sales na­tion­ally were at a price point be­low $400,000.

Through­out 2012, home sales at prices be­low $200,000 ac­counted for just 7 per cent of all sales which was greater than the pro­por­tion of sales be­tween $800,000 and $1 mil­lion and those priced over $1 mil­lion.

The vast ma­jor­ity of sales across the coun­try through­out the year oc­curred at prices be­low $600,000 which ac­counted for 70.8 per cent of all sales na­tion­ally.

Only 5.6 per cent of all homes sold in 2012 were priced in ex­cess of $1 mil­lion.

Over time there has been a sig­nif­i­cant de­cline in the pro­por­tion of home sales at prices be­low $200,000.

The de­cline in the pro­por­tion of sales at this price point ac­cel­er­ated sharply from 2000, in line with the boom pe­riod for home value growth which com­menced at that time.

Twenty years ago, 86.2 per cent of all home sales were at prices be­low $200,000, 10 years ago they ac­counted for 46.7 per cent of all sales and to­day they equate to just 7.0 per cent.

Much of this ac­tiv­ity has shifted to a price point be­tween $200,000 and $600,000 as high­lighted in the chart.

In­ter­est­ingly, at its ab­so­lute peak over the year to De­cem­ber 2010 and Jan­uary 2011, sales of homes in ex­cess of $1 mil­lion ac­counted for just 6.6 per cent of to­tal an­nual sales.

Sales in ex­cess of $1 mil­lion cur­rently ac­count for 5.6 per cent of all sales, 10 years ago they ac­counted for 1.5 per cent and 20 years ago they ac­counted for 0.3 per cent of all sales.

Over­all, the re­sults high­light that the vast ma­jor­ity of stock is trans­act­ing at a price point be­low $600,000.

The re­sults also high­light af­ford­abil­ity con­straints within the mar­ket with the pro­por­tion of sales of cheaper homes de­clin­ing sharply since 2000.

GRAPH: rolling an­nual pro­por­tion of sales na­tion­ally across price points

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