When the chief economist of one of Australia’s largest real estate players says entering Sydney’s property market is more or less impossible, it’s enough to make you lose your brunch.
Dr Andrew Wilson, lead boffin behind property powerhouse Domain, said investors have spurred property prices in the city to a point where it’s only possible to buy a house if you’ve already got a few to spare.
“We have a debate about affordability because the Sydney market is basically closed to first-home buyers. The level of investors is higher now than it was last year,” Wilson said.
That take comes off the back of another absolutely huge / harrowing few days of auctions in the city, and data shows housing prices rose even further in the past three months.
The median house price now sits at a soul-crushing $1,068,303, cheers to a 2.7% increase over that quarter. What’s more: prices are predicted to climb even further.
That’s despite next week’s possible interest rate bump, along with a recent tweak to home loan guidelines. Lenders are now supposed to ensure mortgage-holders can pay up, even if interest rates jump to 7%.
Domain itself crunched the numbers this week to tell ya what it’ll take to meet those guidelines.
Assuming you’re a good young Millennial with sensible breakfast choices who’s managed to stump up a 20% deposit on a house at median prices – in itself a big assumption – you’ll still need to prove you can pay over $6,000 a month towards a mortgage before taking one out.
We’re not mad. We’re laughing, actually.
Source: Domain.
Photo: Brendon Thorne / Getty.
Photo: Brendon Thorne / Getty.
