For the first time in history, Australia’s median house price has surpassed the one million dollar mark – so what can buyers and sellers do to navigate this?
Considering the change in spending habits, shortage of building materials and just about everyone in the nation reevaluating the quality of their lifestyle, there’s simply not enough supply to meet the demand when it comes to our national property market.
While this has put many sellers in an enviable position, skyrocketing house prices are not expected to simmer down until interest rates are raised, and inflation and wage growth stabilises. As an extra variable to contend with, the prospect of opening our international borders will also have a part to play in the not so distant future.
While the past twelve months have not been so great for the average first home buyer, sellers have had extremely favourable conditions to work with. Ultimately, the numbers don’t lie, with recent figures released by Domain’s latest House Price Report indicating that Australia has never before seen numbers quite like this.
The Latest Median House Price Figures Explained
When it comes to the world of property, anyone in the know is all too aware of the unprecedented growth that Australia has experienced over the course of the pandemic. However, the exact figures have managed to shock even the most experienced in the real estate industry.
In 2021, capital city buyers across the nation forked out an average of $1,066,133 to buy a house. This represents an annual increase of 25.2% and a quarterly rise of 6.5%, with the latter demonstrating that the market bounced back in a big way at the end of the year following months of uncertainty linked to ongoing lockdowns and travel restrictions.
Among the eight capital cities, Sydney’s unprecedented levels of growth equated to a 33.1% year-on-year rise, with the median price for a house in Australia’s most populous urban hub now sitting at $1,601,467, with the leap equating to the average Sydney house’s value increasing by roughly $1,100 per day.
That’s not to say that Melbourne didn’t receive the same amount of attention. Even though large swarms of Victorians have headed north to Queensland in record levels of interstate migration, Melbourne homeowners still enjoyed a value rise of $660 a day over the last quarter, taking the Victorian capital’s median price to a new record high of $1.1 million, with an annual rise of 18.6% when compared to the same period twelve months earlier.
For those looking to buy and sell in 2022, paying attention to changes in interest rates may give a preview on what to expect from the national property market in the year ahead. According to new research released by The Commonwealth Bank of Australia, Westpac Banking Corporation, Australia and New Zealand Banking Group, and National Australia Bank – otherwise known as Australia’s “big four” banks – when comparing to the current 20%, growth is set to slow to just 6% in 2022, before dropping again to 4% in 2023.
While Australia’s median house price certainly isn’t predicted to drop dramatically anytime soon, the market is showing some early signs of cooling. All up, house prices had risen three times faster than units and apartments over the past year, but combined quarterly price growth has lost momentum when compared to earlier in 2021, with Domain suggesting the pace of price growth had already reached its apex. When the dust begins to settle, buyers can generally expect more choice, and sellers will need to start being realistic about the upcoming changes.
Should you be looking to sell your home or purchase a new one, enlisting the services of a free property advisor like ESPA can often be a game changer. As an example, your advisor would likely research the property, local agents, check the zoning, evaluate market conditions, and communicate clearly with you regarding all of your options – but where do you find one?
Take The Stress Out Of Selling Property
As a completely free service, Emergency Services Property Advisors provide property advisor services to Police, Fire, Ambulance and S.E.S personnel and their families right across Victoria.
Luke and the team at ESPA are passionate about providing support to some of Australia’s most valued public servants. Along with key industry insights, ESPA also works with a broad range of service providers linked to the real estate industry such as conveyancers, trades, legal practitioners and mortgage brokers.
If you are an emergency services worker looking to potentially buy or sell property in the future, please get in touch with Emergency Services Property Advisors today to discuss how we can turn your real estate dreams into reality, or call Luke directly on 0414 757 705.
