Home Prices Reach New Heights

Home Prices Reach New Heights

By: Nfinity Financials0 comments

The new information from Domain’s Home Price Report for March 2024 shows that the housing market keeps surprising everyone. It’s breaking old records and making new ones every few months. The report says that both houses and apartments in the big cities have seen amazing growth. Houses have gone up for the fifth time in a row, and apartments for the fourth time. What’s really surprising is that just in the first three months of 2024, they broke 10 old records. This shows how strong and lively the market is.

Sydney is at the front, with the median house price hitting over $1.6 million for the first time ever. This huge jump, a 12.8 percent increase since December 2022, shows how much people want to live there. Prices for apartments in Sydney have shot up even more, almost doubling compared to last quarter, now averaging at $806,137. But it’s not just happening in Sydney. Big cities like Brisbane, Adelaide, and Perth are also seeing record-high prices for houses and apartments, showing it’s a trend across the country. Canberra is leading with a median house price of $1.05 million, followed by Melbourne at $1.03 million.

The Chief of Research and Economics at Domain says there are many reasons behind these high prices. There aren’t enough new homes being built, lots of people are moving in, building costs are going up, and it’s hard to find rental places. Even though living costs are high and interest rates are up, experts think prices will keep going up in the near future.

This rise in prices doesn’t just affect people buying homes, especially those trying to buy their first one which is the First-time home buyers (FHBs). Renting is getting harder, so many FHBs might try to buy a home sooner. This could mean more people looking to buy, especially in cheaper areas like Perth, Brisbane, and Adelaide.

But even with all this buying and selling, worries about being able to afford a home are getting bigger. A recent report from ANZ and CoreLogic shows it’s getting harder for first-home buyers. The national savings rate dropped to 3.2 percent in the last part of 2023, making it tougher to save up for a big deposit in a reasonable amount of time. Because of this, fewer FHBs might be able to buy homes in the next year, making it even tougher for people who want to get into the property market.

Conclusion

As we go through these strange times, the Australian property market keeps going into new territory. Lots of things are pushing people to buy homes and changing what it’s like to own one. While high prices might be good news for some, they also show how important it is to find new ways to make homes affordable. We need to make sure that everyone in Australia can still have a chance to own a home.

For more insights and guidance on the market, we’re here to help you every step of the way on your financial journey. Book your consultation today or give us a call at 1300 GET LOAN.

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