If you want to buy a middle of the road house in Sydney you need a million dollars, according to a new report.
Sydney’s median house price has risen past the $1 million mark, which is more expensive than London and not far off levels in New York.
The Domain House Price Report published by Fairfax, shows Sydney’s median level house is $332,586 more expensive than in Melbourne – the city with the next highest median price.
Domain’s senior economist, Dr Andrew Wilson, told fairfax house prices soared by 8.4 per cent over the June quarter to $1,000,616.
“It’s the highest rate of growth since the late 1980s,” Dr Wilson said.
“And it’s because of low interest rates and they’re going lower, lower and lower.”
Nationally, the median house price is $701,827, which is $298,789 less than Sydney.
The report shows the median house price in Sydney has risen by 22.9 per cent, or almost $200,000, in a year.
That is one of the highest annual growth rates the city has ever seen. Dr Wilson said it’s even higher than the 2001 to 2002 boom period.
Auctioneer Will Hampson has seen auctions go $200,000 to $500,000 over the reserve price this year. He says suburb records are often broken.
Auction listings are up 50 per cent on 2014 for August and he’s also predicting a solid spring.
“Conditions are perfect because interest rates are at record lows and there’s a shortage of supply in many pockets,” Mr Hampson said.
“A lot of buyers want to buy in a particular suburb – so perhaps Balmain, Mosman or Double Bay … if they want to buy in those suburbs they are going to have to pay the price.”
Here’s where your capital city median house price ranks:
1. Sydney = $1,000,616
2. Melbourne = $668,030
3. Darwin = $654,270