HOUSE PRICES

House prices are linked to all aspects of housing and the housing market. House prices influence: whether people can afford to purchase homes, the rental costs tenants pay, and other business and market activities in the housing sector. Upwards movements in house prices impact upon individuals who already own a home through increasing the value of what is often their most significant economic investment.

The price of established houses in the capital cities rose by almost half (46%) between 2002-03 and 2008-09, with prices increasing at an average of 6.5% per year. Over this period, prices generally rose from quarter to quarter with the exception of fluctuations in 2004 and 2005, and four quarters of decline beginning in the June quarter of 2008. The recent decline in house prices was, in part, due to a wider slowdown in the economy as a result of the global financial crisis.