Property prices and wages 1974-2004
Mar 28th 2005, 12:00 am
#1
Guest
Posts: n/a
Property prices and wages 1974-2004
Some figures I found recently, showing average Brisbane House prices, and averaged wage growth during the last 30 years
House values
1974 $ 23,350.00
1984 $ 58,950.00 = 152% growth over last 10 years or 9.7% per year average
1994 $130,500.00 = 121% growth over last 10 years or 8.25% per year average
2004 $350,000.00 = 168% growth over last 10 years or 10.37% per year average
(Brisbane Houses averaged over the entire 30 year period = 9.444%)
Then compared to average wages........
Average earnings
1974 $ 6,916.00
1984 $15,400.00 = 123% growth over last 10 years or 8.33% per year average
1994 $34,216.00 = 122% growth over last 10 years or 8.31% per year average
2004 $51,500.00 = 51% growth over last 10 years or 4.175% per year average
(Wages averaged over the entire 30 year period = 6.92%)
It looks like wages need some catching up to do to get back up to the average growth ?
House values
1974 $ 23,350.00
1984 $ 58,950.00 = 152% growth over last 10 years or 9.7% per year average
1994 $130,500.00 = 121% growth over last 10 years or 8.25% per year average
2004 $350,000.00 = 168% growth over last 10 years or 10.37% per year average
(Brisbane Houses averaged over the entire 30 year period = 9.444%)
Then compared to average wages........
Average earnings
1974 $ 6,916.00
1984 $15,400.00 = 123% growth over last 10 years or 8.33% per year average
1994 $34,216.00 = 122% growth over last 10 years or 8.31% per year average
2004 $51,500.00 = 51% growth over last 10 years or 4.175% per year average
(Wages averaged over the entire 30 year period = 6.92%)
It looks like wages need some catching up to do to get back up to the average growth ?
Mar 28th 2005, 12:36 am
#2
Guest
Posts: n/a
Re: Property prices and wages 1974-2004
It's quite clear to me that house prices will stagnate for a while whilst incomes catch up, in both the UK and Australia. Could be 3-5 years, who knows.
Badge
Badge
Mar 28th 2005, 1:02 am
#3
Joined: Aug 2003
Posts: 11,149
Re: Property prices and wages 1974-2004
http://www.smh.com.au/news/National/...692684868.html
Bargains galore as house prices plunge
By Hannah Edwards
March 27, 2005
The Sun-Herald
A list of more than 400 of Sydney's bargain homes is available in the print edition.
Sydney house hunters looking for quality properties have never been so spoilt for choice.
A report by Home Price Guide exclusively for The Sun-Herald reveals the price of hundreds of properties across Sydney on sale since before September have dropped by as much as 40 per cent.
In Dulwich Hill, a three-bedroom terrace was first listed for sale last May for $980,000. Now it's a bargain buy for $580,000.
In Double Bay, a luxury apartment on Carlotta Road first listed in March 2003 for $2.79 million is for sale for $1.95 million - a fall of $840,000.
In Hunters Hill, Ellie and Kevin Allen's Euthella Avenue home is for sale for $1.15 million - $800,000 less than it was first listed last June.
Ms Allen is certain her three-bedroom house has all the right ingredients: it is close to the city and the ferry, and has water views. But like many vendors, she has been left wondering why the house has not sold.
Bargains galore as house prices plunge
By Hannah Edwards
March 27, 2005
The Sun-Herald
A list of more than 400 of Sydney's bargain homes is available in the print edition.
Sydney house hunters looking for quality properties have never been so spoilt for choice.
A report by Home Price Guide exclusively for The Sun-Herald reveals the price of hundreds of properties across Sydney on sale since before September have dropped by as much as 40 per cent.
In Dulwich Hill, a three-bedroom terrace was first listed for sale last May for $980,000. Now it's a bargain buy for $580,000.
In Double Bay, a luxury apartment on Carlotta Road first listed in March 2003 for $2.79 million is for sale for $1.95 million - a fall of $840,000.
In Hunters Hill, Ellie and Kevin Allen's Euthella Avenue home is for sale for $1.15 million - $800,000 less than it was first listed last June.
Ms Allen is certain her three-bedroom house has all the right ingredients: it is close to the city and the ferry, and has water views. But like many vendors, she has been left wondering why the house has not sold.
Mar 28th 2005, 1:19 am
#4
Joined: Aug 2003
Posts: 11,149
Re: Property prices and wages 1974-2004
Originally Posted by ABCDiamond
Some figures I found recently, showing average Brisbane House prices, and averaged wage growth during the last 30 years
House values
1974 $ 23,350.00
1984 $ 58,950.00 = 152% growth over last 10 years or 9.7% per year average
1994 $130,500.00 = 121% growth over last 10 years or 8.25% per year average
2004 $350,000.00 = 168% growth over last 10 years or 10.37% per year average
(Brisbane Houses averaged over the entire 30 year period = 9.444%)
Then compared to average wages........
Average earnings
1974 $ 6,916.00
1984 $15,400.00 = 123% growth over last 10 years or 8.33% per year average
1994 $34,216.00 = 122% growth over last 10 years or 8.31% per year average
2004 $51,500.00 = 51% growth over last 10 years or 4.175% per year average
(Wages averaged over the entire 30 year period = 6.92%)
It looks like wages need some catching up to do to get back up to the average growth ?
House values
1974 $ 23,350.00
1984 $ 58,950.00 = 152% growth over last 10 years or 9.7% per year average
1994 $130,500.00 = 121% growth over last 10 years or 8.25% per year average
2004 $350,000.00 = 168% growth over last 10 years or 10.37% per year average
(Brisbane Houses averaged over the entire 30 year period = 9.444%)
Then compared to average wages........
Average earnings
1974 $ 6,916.00
1984 $15,400.00 = 123% growth over last 10 years or 8.33% per year average
1994 $34,216.00 = 122% growth over last 10 years or 8.31% per year average
2004 $51,500.00 = 51% growth over last 10 years or 4.175% per year average
(Wages averaged over the entire 30 year period = 6.92%)
It looks like wages need some catching up to do to get back up to the average growth ?
Mar 28th 2005, 1:57 am
#5
Lost in BE Cyberspace
Joined: May 2004
Location: Birkdale QLD
Posts: 7,642
Re: Property prices and wages 1974-2004
Originally Posted by ABCDiamond
(Wages averaged over the entire 30 year period = 6.92%)
It looks like wages need some catching up to do to get back up to the average growth ?
It looks like wages need some catching up to do to get back up to the average growth ?
There are 2 ways of looking at this.
1/ Because house prices have gone up more quickly than individual wages, both parents have to work to be able to afford a house.
2/ Because both parents are working, more families can afford to buy houses, so house prices are pushed up due to supply and demand.
It's chicken and egg, again.
Mrs JTL
Mar 28th 2005, 2:43 am
#6
Dutch expat/Aus citizen
Joined: Apr 2003
Location: South East, Perth (was Holland)
Posts: 5,789
Re: Property prices and wages 1974-2004
Prices are expected to keep going up in Perth for a while yet. 
Mar 28th 2005, 6:04 am
#7
Guest
Posts: n/a
Re: Property prices and wages 1974-2004
Originally Posted by JackTheLad
I assume the average wages reported are individual wages. Comparing to 30 years ago, there are now a lot more families with 2 income earners. It will be interesting to see the growth comparison between house price and household income.
Mar 28th 2005, 6:15 am
#8
Guest
Posts: n/a
Re: Property prices and wages 1974-2004
Originally Posted by Simone
Prices are expected to keep going up in Perth for a while yet.
Between 1990 and 2003 Perth only went up by 47.4%
Compared to Sydney 70.3%
Brisbane 60.2%
and even Canberra at 76.9%
The National average went up by 63.2%
Mar 28th 2005, 6:38 am
#9
Lost in BE Cyberspace
Joined: Feb 2005
Posts: 15,526
Re: Property prices and wages 1974-2004
Originally Posted by Badge
It's quite clear to me that house prices will stagnate for a while whilst incomes catch up, in both the UK and Australia. Could be 3-5 years, who knows.
Badge
Badge
That may well have a major impact on prices, one will have to wait and see.
I'm certainly going to have a good hard look at investment property when I come back from my holiday.
Mar 28th 2005, 7:05 am
#10
BE Enthusiast
Joined: Jan 2004
Location: Hillarys, WA
Posts: 334
Re: Property prices and wages 1974-2004
Originally Posted by Simone
Prices are expected to keep going up in Perth for a while yet.
It would be interesting to see what proportion of houses are owner occupier sales and which have been sold as rental investments over the past 2 years, that would show the real state of the market.
Totally agree, wages need to catch up or prices fall off.
Having a drive yesterday we called into Harbour rise at Hillarys (15km North of Perth)
360 sqm blocks = $400k.... get a house on one but little else. anyone investing here is going to catch a nasty cold in two years... in a falling crowded market houses there will be virtually unsellable.
Untill sanity returns, my money stays in the bank.
Mar 28th 2005, 8:03 am
#11
Dutch expat/Aus citizen
Joined: Apr 2003
Location: South East, Perth (was Holland)
Posts: 5,789
Re: Property prices and wages 1974-2004
Originally Posted by steveyp
I have read the propaganda Saturday too in the West Australian, in my view it is just another vested interest trying to talk the dying market up. In fact I have seen lots of articles of this nature in the past few weeks. (I fear they do protest too much..)
It would be interesting to see what proportion of houses are owner occupier sales and which have been sold as rental investments over the past 2 years, that would show the real state of the market.
Totally agree, wages need to catch up or prices fall off.
Having a drive yesterday we called into Harbour rise at Hillarys (15km North of Perth)
360 sqm blocks = $400k.... get a house on one but little else. anyone investing here is going to catch a nasty cold in two years... in a falling crowded market houses there will be virtually unsellable.
Untill sanity returns, my money stays in the bank.
It would be interesting to see what proportion of houses are owner occupier sales and which have been sold as rental investments over the past 2 years, that would show the real state of the market.
Totally agree, wages need to catch up or prices fall off.
Having a drive yesterday we called into Harbour rise at Hillarys (15km North of Perth)
360 sqm blocks = $400k.... get a house on one but little else. anyone investing here is going to catch a nasty cold in two years... in a falling crowded market houses there will be virtually unsellable.
Untill sanity returns, my money stays in the bank.
We're going to have to buy soon(to live in), but might not be able to till next year, when Pascal gets his permanent visa.
I don't think the prices will rise by much, if they do, but they certainly aren't going to drop yet, not in the area's where I'm looking. But you never know, that's the problem, and at the moment we're just 'wasting' money on rent!
p.s. Steve, change your location!
Mar 28th 2005, 8:08 am
#12
Banned
Joined: Mar 2003
Posts: 4,432
Re: Property prices and wages 1974-2004
Originally Posted by JackTheLad
I assume the average wages reported are individual wages. Comparing to 30 years ago, there are now a lot more families with 2 income earners. It will be interesting to see the growth comparison between house price and household income.
There are 2 ways of looking at this.
1/ Because house prices have gone up more quickly than individual wages, both parents have to work to be able to afford a house.
2/ Because both parents are working, more families can afford to buy houses, so house prices are pushed up due to supply and demand.
It's chicken and egg, again.
Mrs JTL
There are 2 ways of looking at this.
1/ Because house prices have gone up more quickly than individual wages, both parents have to work to be able to afford a house.
2/ Because both parents are working, more families can afford to buy houses, so house prices are pushed up due to supply and demand.
It's chicken and egg, again.
Mrs JTL
Mar 28th 2005, 8:14 am
#13
Banned
Joined: Mar 2003
Posts: 4,432
Re: Property prices and wages 1974-2004
Originally Posted by Simone
I don't know where I read it, but I agree with it. Maybe not the really expensive coastal area's, that are already like Syd, Mel etc, but inland I think prices will still be catching up for a while.
We're going to have to buy soon(to live in), but might not be able to till next year, when Pascal gets his permanent visa.
I don't think the prices will rise by much, if they do, but they certainly aren't going to drop yet, not in the area's where I'm looking. But you never know, that's the problem, and at the moment we're just 'wasting' money on rent!
p.s. Steve, change your location!
We're going to have to buy soon(to live in), but might not be able to till next year, when Pascal gets his permanent visa.
I don't think the prices will rise by much, if they do, but they certainly aren't going to drop yet, not in the area's where I'm looking. But you never know, that's the problem, and at the moment we're just 'wasting' money on rent!
p.s. Steve, change your location!
