After a year of rapid growth, Australia’s median home prices have exceeded $ 1 million ($ 714,000), according to domain updates. Home Price Report..
Median homes in Sydney have risen to $ 1.6 million annually, median home prices in Melbourne and Canberra have exceeded $ 1.1 million, and the remaining capital is between $ 600,000 and $ 800,000.
Nationally, home prices rose 25% in 2021 and home prices in Sydney, Canberra, Hobart and Darwin rose more than 30%.
The median $ 1 million is a psychological barrier to market entry, said Nikola Powell, head of research for the domain.
“People who don’t have a home yet face such a dramatic rise in prices in such a short amount of time. [and] It is a time when rent is also rising.Wage growth hasn’t caught up with it, “Powell said. Said.. “If you don’t own a house, if you are a parent, how can they afford it?”
Prices are unlikely to peak, but were clearly cold, especially in Sydney and Melbourne, where lack of affordability has pushed buyers out of the market.
“Sydney’s clearance rate dropped from 81% in the March quarter to 68% in the December quarter, and expected buyer inquiries fell by 20% over the same period,” Powell said. .. ..
Home prices in Sydney are up $ 1,100 a day compared to 2021 for a total of $ 400,000. This was the fastest annual growth rate on record. In Melbourne, housing rose $ 660 a day, making the strongest annual profit since 2010.
The sharp rise in prices has created barriers to entry and economic barriers for high-end buyers, while wage growth remains low.
Eliza Owen, Head of Research at CoreLogic, said the issue of affordable housing is pushing people to the unit.
“Affordable constraints limit the growth of the single-family home market and gradually bias demand towards higher-density housing options,” Owen said.
In contrast, the Brisbane and Adelaide markets show no signs of slowing, supply remains low and demand remains high. As a result, two speed markets have emerged throughout the capital.
“In cities like Adelaide and Brisbane, there was a spill of inhabitants before the pandemic, but since the pandemic they have seen a net increase in the number of people who choose to live there. It will change the housing market.” Powell said.