a picture tells a story...

They say a picture tells a thousand words and this chart certainly does tell a stark story. The standouts include the GFC price falls from Q3 2008 through early 2009 followed by the resultant bounce in market confidence during 2009 which peaked prior to the expiration of the government boost to the FHOG (Q4 2009). It's no surprise that the national average house price peaked shortly after (April 2010 according to ABS figures).

The FHOG boost merely brought forward demand which lured our most marginal borrowers into the market at the worst possible time - near a major price peak. Since 2010 average prices have been falling largely due to the demand vacuum created by this inept policy. The one positive that can be drawn from this chart is that, if the trend continues, Brisbane house prices will eventually become affordable again in coming years.