It’s finally, actually, legitimately happened: Sydney‘s median house price has hit the $1 million mark for the first time in history.
The Domain House Price Report, released today, revealed the depressing AF news, which means Sydney’s median is now higher than the average cost of a home in London and isn’t too far behind New York.
Domain’s senior economist, Dr Andrew Wilson, puts the massive 8.4% jump over the June quarter, to $1,000,616, down to low interest rates and an investor frenzy:
“It’s the highest rate of growth since the late 1980s. And it’s because of low interest rates and they’re going lower, lower and lower… [And] Sixty-two per cent of the housing market loan share is now investors – another record – and an increase of 27 per cent over the first five months of this year compared with the first five months of last year.”
Even seasoned auctioneers whose job is to drive bidders’ prices have called the rate of growth “incredible.”
It gets worse.
Comparison site mozo.com.au have crunched the numbers, and estimate that first homebuyers will now need to save consistently for a freakin’ DECADE to muster the average $113,000 property deposit.
Based on the average property price in each capital city, Mozo put the time required to save a 20% deposit (based on a $5,000 starting balance) as follows:
But don’t worry: you could buy six years and five months earlier if you shack up with your parents in the interim.
Via Domain.
