The latest data from the Queensland Department of Environment and Resource Management (ERM) confirms that (mean) average house prices in the Gold Coast have risen to over $600,000.
Data for 2,094 sales in the Gold Coast over the six months to 30 June 2010 showed an average (not median) house price of $600,110, an increase of 4.2 percent over the previous six months and 12.2 percent from the lowest point in the GFC cycle (the six months to 30 June 2009 with an average of $534,924).
The latest data is confirmation that house prices have recovered from the fall experienced during 2008 and into early 2009.
The curious thing about the Gold Coast’s housing market is that despite very low sales volumes over the past 12 months, average house prices have risen by 12% in that time.
Normally, rising house prices reflect stronger demand and rising sales volumes. This is a fundamental law of demand push inflation.
The Government data indicates a chronic under-supply of new and existing housing to meet even less than average demand. The same situation does not apply to units, where prices are still falling - to an average of $476,614 in the June 2010 half year.
The current level of house sales on the Gold Coast is the lowest since the 1981-82 recession. It has affected real-estate agents, conveyance lawyers, removalists and all those businesses that rely on property sales.
Sunday, October 3, 2010
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