Turns out that house prices hit new peaks roughly every four years. This is shorter than the once quoted seven years.
“This makes sense given the way we receive information these days and how fast news spreads,” Matusik writes.
“Gone are the days of a weekly or even monthly real estate report in the printed press. News is at our fingertips 24/7. Quarterly house price growth reports have now morphed into daily indexes.”
The other myth he dispels with some deft number crunching is that property prices double every seven years. It takes almost double that.
“It is often said that housing values double every seven years; that it is that they grow by around 10 per cent per annum,” he writes.
“Well, that might have been true in some distant past – and was probably not – but on recent trends; even when factoring in the big price hikes in 2020 (and 2022); the annual rate of capital gain, across Australia and for detached houses, is now 5.4 per cent.”
Good to know for your property fortunes, or your next trivia night.
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