House Price Movements Whitepaper
- House Price Movements Whitepaper – Data to 1 Apr 2019
There is a significant amount of conjecture as to whether Australian property remains overpriced and whether prices are likely to fall further. Intuitively the amount a buyer can afford to pay for real estate is in significant part determined by their income and the amount required to service a mortgage loan.
The attached research paper describes the CCZ Statton Affordability Property Price Index (CAPPI), which utilises movements in average weekly earnings and mortgage interest rates in formulating an equilibrium property price index. This can then be compared with movements in various house price indices.