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Nearly a third of houses sold for less than $400,000 last FY

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    National dwelling values may be falling, but it isn’t having much of an impact on the lower end of the housing market. The sales volume of dwellings worth under $400,000 continues to trend down, according to a report released recently by CoreLogic.

    The slowing down of dwelling value growth over the 2017-18 financial year, from an increase of 10.2% to a decline of -0.8% over the previous year, did little to boost the sales of the most affordable properties.

    According to the report, “nationally, 29.2% of all houses and 34.6% of all units sold during the 2017-18 financial year transacted for less than $400,000”. The share of sales below the price point fell from 30.7% for houses and 35.4% for units a year earlier. However, the share of sales under $400,000 went slightly up during the past few months for both houses and units.

    The report also pointed out that “the share of sales below $400,000 is predictably much larger across the regional areas of the country than within the capital cities”. Over the financial year, 49.6% of all regional house sales and 57.3% of all unit sales transacted for less than $400,000.

    “With values now falling in Sydney and Melbourne it is unlikely to initially result in an increase in sales under $400,000; however, should it continue for a number of years we may finally see a reversal of the declining trend in sales under $400,000,” CoreLogic researcher analyst Cameron Kusher said in a statement.

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    Original Article