Average home price escalates
The national value of the dwelling stock increased by $131 billion to an estimated $11.37 trillion in the March 2025 quarter, according to the Australian Bureau of Statistics.
The land value component accounts for more than $7 trillion of the total, with analyst Cameron Kusher noting how land value increases have outpaced the value of buildings over the past 25 years in a blog post
here.
Source: ABS
Over the year to March 2025, the number of dwellings increased by around 180,000 to an estimated 11,338,500, far short of the pace of population growth.
Dividing one figure by t'other gets us to a mean dwelling price of A$1 million for the first time, although in truth the 'mean' price is a fairly 'mean-ingless' figure when it comes to average housing prices, since it can be skewed higher by ultra-expensive homes.
The increases over the year were fairly broad-based, but with some weakness in Victoria and the heavily-taxed Australian Capital Territory.
Source: ABS
Despite the increase in housing values, the loan to value ratio for the overall housing market has barely moved over the past 25 years, sitting at around only 22 per cent.
NAB Survey capitulating
The best real-time reading of how the Aussie economy is faring arguably comes from the NAB Business Survey, and, well...the news doesn't look amazing.
In fact, business conditions continued to decline to a reading of zero, continuing a long decline over the past few years.
The readings for profitability and employment were also both very weak.
Source: NAB
Importantly, the NAB Survey also gives a reading on potential inflation pressures, which have also seemingly dissipated now.
Financial markets have fully priced in an interest rate cut at the next Reserve Bank meeting for July.
Stock markets in Australia have moved ahead in anticipating some juice from lower interest rates, fully recovering their decline from earlier in the year to close at a record high this afternoon.
Putting all that together, there's no doubt that household wealth will now be breaking new highs in 2025.
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