Why house price growth will slow in 2021 following double-digit surges

Australian home price growth is set to slow down in late 2021 following double-digit surges since the worst of the Covid downturn.

National property values climbed by 1.8 per cent in April, a sharp comedown from March's 2.8 per cent pace which was the fastest since October 1988.

Since the Covid downturn ended in September last year, following five straight months of decline, house and apartment prices have soared by 10.2 per cent.

CoreLogic's research director Tim Lawless said property price growth was likely to slow in coming months as affordability worsened.

Australian home price growth is set to slow down in late 2021 following double-digit surges since the worst of the Covid downturn. A young couple wanting to buy a Sydney house, with a median price of $1.147million would need to save up $229,470 to fund a 20 per cent mortgage deposit. Pictured is a house at Auburn in the city's west with a price guide of $1.145million to $1.195million

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Australian home price growth is set to slow down in late 2021 following double-digit surges since the worst of the Covid downturn. A young couple wanting to buy a Sydney house, with a median price of $1.147million would need to save up $229,470 to fund a 20 per cent mortgage deposit. Pictured is a house at Auburn in the city's west with a price guide of $1.145million to $1.195million

'The slowdown in housing value appreciation is unsurprising given the rapid rate of growth seen over the past six months, especially in the context of subdued wages growth,' he said.

'With housing prices rising faster than incomes, it's likely price sensitive sectors of the market, such as first-home buyers and lower-income households, are finding it harder to save for a deposit and transactional costs.'

A young couple wanting to buy a Sydney house, with a median price of $1.147million would need to save up $229,470 to fund a 20 per cent mortgage deposit. 

Sydney's mid-point house last month increased by 2.8 per cent - double the 1.4 per cent annual increase in Australian wages.

Weekend auction clearance rates in Australia's most populated city stood at 83.5 per cent. 

Even the national property price of $624,997, covering both capital cities and regional areas, would be a stretch for someone earning an average,

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