National - Family home sales stagnant; renovations rocketing

No wonder it’s getting harder to sell the family home. It seems everybody is staying put and renovating instead. The Bureau of Statistics figures just released for Sydney state that ‘large alterations’ grew by 11% last year. The Masters Builder Association calculates renovations at $10 billion nationally for this year while new home construction in volume is at 1950’s levels (Australia’s population then 9,000,000). This does not mean people are trying to save money. Archicentre is quotes as stating the average Sydney reno is now $500,000.
Interestingly, the average house prices in Australia’s capital cities are:
Sydney $582,000
Melbourne $499,000
Brisbane $460,000
Adelaide $400,000
Perth $495,000