The housing market in Australia right now is — to put it quite simply — wild. And while it’s something you can likely infer just by browsing property prices online or hearing anecdotes from those looking to buy, it’s also now been made official in Domain’s House Prices Report.
The data reveals that the national median house prices have hit a historical record of over $950,000, which is an 18.8% record growth as compared to last year. But while this news is no doubt groan-inducing, there is a silver lining.
“Despite a big jump in house prices, the rate of price growth is slowing down, which will be welcome news for prospective buyers,” says Dr Nicola Powell, Chief of Research and Economics at Domain. “It could be an opportunity for buyers to get into the market and make the most of ultra-low home loan rates and government stimulus.”
So, if you’re looking to buy, where should you be looking?
Perth, apparently. According to the report’s findings, Darwin is no longer the most affordable city to purchase a house — for the first time in 28 years, Perth is. While its median house price has increased, it’s not enough to keep pace with the other major cities.
“Unit prices in Perth buck the rising trend and fell moderately, a stronger performance in prior quarters have resulted in the steepest jump in 14 years,” says Dr Powell. “This is good news for buyers seeking that affordability factor combined with future capital growth prospects.”
Unsurprisingly, Sydney remains the most expensive Australian city to buy a house with a median house price of $1.41 million. Between April and June of this year, house prices have grown by almost $1,200 a day, amounting to a total rise of $107,000.
For the first time, Melbourne and Canberra have joined Sydney with a median house price of over a million dollars. Melbourne house prices increased by almost $41,000, while Canberra median house prices increased on average by just over $1,000 a day for the June quarter.
“Record low-interest rates, prioritisation of home-life due to travel restrictions and redirection of discretionary income to pay down debt has given Australians more buying power, driving up prices and therefore, seeing a significant spike in median house prices setting new records across Australia both in metro cities and regional areas,” Dr Powell says.
Head here to read Domain’s full (eye-watering) report.