House sales under $400k lead the way
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