After record high home price growth last year, buying a home became less affordable in most of the country, but there are some regions where properties are priced below the national average.
Since the start of the pandemic, most regions have seen a fall in the share of new listings priced below $600,000.
This followed exceptional home price growth in 2021 – the third highest period of annual growth in Australia's history.
Regional areas saw the greatest declines in the share of properties listed below $600,000, as their price growth outperformed most capital cities.
This is most evident in the 32 percentage point fall in share of new listings below $600,000 in regional New South Wales and regional Victoria, and the 31 percentage point fall in regional Tasmania.
The regional boom, which was accelerated by the pandemic, saw many Aussies move to suburbs by the sea or close to nature, resulting in heightened demand and a surge in home prices.
Regional areas saw the largest declines in share of listings under $600,000. Picture: Getty
Capital cities where homes were more affordable than Sydney and Melbourne also saw considerable declines in their share of listings under $600,000, due to the effects of strong interstate migration.
Hobart, Brisbane, and Adelaide experienced falls of 34 percentage points, 27 percentage points and 26 percentage points respectively.
Although affordability remains a challenge for many Australians, especially as rapidly rising interest rates make mortgage repayments more expensive, there are still many regions where the majority of listed homes are prices at less than $600,000.
Among our capitals, Perth and Darwin had the largest share of listings under that price point, with 57% and 59% of dwellings below the threshold.
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The proportion of listings under $600,000 was typically higher in regional areas – 79% of homes in regional South Australia, 70% of homes in regional Western Australia, and 80% of homes in regional Northern Territory.
Prospective buyers in Regional Tasmania also were afforded many options under $600,000, with 56% of homes listed below that price point.
More than half of homes in Perth are still below $600,000. Picture: Getty
Home prices are predicted to fall further following increases in mortgage rates. This will improve the supply of homes listed below $600,000.
But for those looking now, there remains a significant supply of homes at these more affordable prices, particularly in South Australia, Western Australia, and the Northern Territory.