Every 12 months I have been updating the data I keep on Australian house prices measured in ounces of Gold and Silver. Here is the latest update which takes us through to June 2016 (inclusive).
Data for house prices is via Residex (median house price indices).
Data for Gold and Silver prices is via Perth Mint (bid average AUD).
Key Figures:
Adelaide (Ounces to buy a house)
Housing Peak Against Gold (February 2005): 501oz Gold
Latest Figures (June 2016): 258oz Gold, 19,332oz Silver
Based on Current Spot Price: 249oz Gold, 16,389oz Silver
Brisbane (Ounces to buy a house)
Precious Metals Peak (January 1980): 62oz Gold, 1091oz Silver
Housing Peak Against Gold (February 2004): 600oz Gold
Latest Figures (June 2016): 296oz Gold, 22,237oz Silver
Based on Current Spot Price: 286oz Gold, 18,852oz Silver
Melbourne (Ounces to buy a house)
Precious Metals Peak (January 1980): 67oz Gold, 1181oz Silver
Housing Peak Against Gold (February 2004): 661oz Gold
Latest Figures (June 2016): 433oz Gold, 32,460oz Silver
Based on Current Spot Price: 417oz Gold, 27,519oz Silver
Perth (Ounces to buy a house)
Housing Peak Against Gold (July 2007): 642oz Gold
Latest Figures (June 2016): 295oz Gold, 22,128oz Silver
Based on Current Spot Price: 285oz Gold, 18,759oz Silver
Sydney (Ounces to buy a house)
Precious Metals Peak (January 1980): 103oz Gold, 1811oz Silver
Housing Peak Against Gold (February 2004): 1100oz Gold
Latest Figures (June 2016): 625oz Gold, 46,876oz Silver
Based on Current Spot Price: 603oz Gold, 39,741oz Silver
(Spot Price ratio calculated on A$27/oz for Silver, A$1780/oz for Gold)
(Spot Price ratio calculated on A$27/oz for Silver, A$1780/oz for Gold)
Gold and Silver (monthly data) outperformed all capital city prices since the last update.
My position remains the same as it has been since 2014:
"Over the same period (next 3-5 years) I expect rising precious metal prices and a lower Australian Dollar, so do think investors stacking ounces for the eventual purchase of a house will be rewarded (even those in Sydney). Only time will tell if I'm right."
That said I purchased my own home again in the past 12 months as recently covered on the site:
"But my advice would be not to live your whole life waiting for, planning for, or even hoping for, the next "big crash" (either of the financial system or housing market, arguably the two are joined at the hip in many modern economies).
That might sound odd coming from someone who's analysis, speculation and investments led them to buy a lot of precious metals and write under a handle like 'Bullion Baron'. Some readers may picture me as a nutter with a bunker full of long life food, guns and Gold, just waiting to live out the financial apocalypse 'doomsday prepper' style, but the reality is far less intense.
I'm not saying you shouldn't be prepared for and insure yourself against financial catastrophe, but once you have done so, go out and live a little. The last significant purchase of Gold I made was in late 2014 (after accumulating in the dips periodically in the 6 years prior). I have recently felt comfortable buying a home again in my local property market, Adelaide."
Here are the charts (click any to enlarge).
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