Tue. Dec 7th, 2021

Sydney median house price is now just an auction pie away from a record $ 1.5 million as the country’s real estate market continues to boom during the COVID-19 pandemic.

Domain’s house price report for the September quarter of 2021 has revealed that in the last twelve months, Sydney’s house prices have risen by an average of $ 6700 per week, or $ 957 per day.

More than $ 349,000 was added to the port city’s median price, which saw the fastest annual growth ever recorded with a wallet-squeezing 30.4 percent.

Domains head of research and economics, Dr. Nicola Powell, told 9News.com.au that COVID-19-induced restrictions had made many Australians think about the lifestyle their property provides.

“We have seen phenomenal levels of demand in the market and we see that total inventory for sale has reached a low point for several years. I think what the pandemic has done is focus on our homes – we have used more time in them., they have become our all in and out of the lockdown, “said Dr. Powell.

“Homeowners are putting extra cash normally spent on travel into their homes. That’s partly why we’ve seen this high level of demand for property over the past year, as people are quickly tracking their decisions.”

Nationally, Australia’s median house price has risen 21.9 per cent over the last twelve months to reach a new high of $ 994,579, marking the fastest annual growth ever.

Despite doom and gloom headlines for first-time home buyers – or sky-high conditions for downsizers – Drs. Powell that there are signs that the real estate market is cooling off.

“I think we are past the peak of growth, but in terms of prices, house prices will continue to rise higher,” said Dr. Powell.

“We are seeing the real estate market start to cool off with rising house prices in the last year, which has contributed to the continued price pressure affecting buyers’ participation in the market.

“As COVID-19 lockdowns and restrictions end and the persistently high prices appeal to sellers, sellers begin to re-engage in the market, increasing supply, which in turn provides greater choice for buyers.”

Sydney’s median house price is just $ 1.5 million, having grown by almost a third in just 12 months. (AAP)

It was not just Sydney that saw house prices rise due to a myriad of factors, including high demand, low equities, historically low interest rates and drastically lower estimated consumption during COVID-19 lockdowns.

Melbourne’s median house price rose to $ 1.038 million despite being locked in for most of last quarter. Canberra is now the second most expensive capital to buy a home, and Hobart’s house prices have almost doubled in the last five years.

The only capital to experience negative growth in house prices over the past three months was Perth, which saw a 0.6 percent decline to a median of $ 598,601.

“New listings must continue to be strong to curb rising prices,” said Dr. Powell.

“The number of Australians moving to Perth has reached its peak in eight years – while there is still a positive inward flow to Perth, it appears to be easing but is being replaced by higher investment activity.”

Nationwide, house prices have risen by more than 21 percent over the past 12 months, which is the fastest annual increase ever. (Included)

As house prices jackpot, so do the concerns that properties in Australia will become unaffordable for those with normal wages and who do not have existing equity.

“The sheer affordability of keeping pace with rapid house price increases is proving to be a barrier for many buyers, especially first-time home buyers, who are facing rising deposit targets and poor savings rates,” said Dr. Powell.

“Upsizing is also becoming an economic leap despite the benefit of strong stock growth, and it is especially challenging if sold before buying.”

Australia’s median house price change by capital *

Capital city:

Annual price change:

Median price:

Sydney

+ 30.4 pct

$ 1,499,126

Melbourne

+ 16.8 pct

$ 1,037,923

Brisbane

+ 15.3 pct

$ 702,455

Adelaide

+ 20.1 pct

$ 667,888

Canberra

+ 32.4 pct

$ 1,074,187

Perth

+ 9.8 pct

$ 598,601

Hobart

+ 31.9 pct

$ 698,212

Darwin

+ 33.2 pct

$ 640,068

Combined Capital

+ 21.9 pct

$ 994,579

* Domain’s house price report for September quarter 2021

Bondi Beach property sold for $ 1 million over reserve

The information on this website is general only and does not constitute personal financial advice. The information is prepared without regard to your personal goals, financial situation or needs. Before shopping for any information on this website, you should consider whether the information is appropriate in relation to your goals, financial situation and needs.

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