Our Sydney property market neighbours have dizzy heads with median house prices surging well and truly above the million dollar mark, but Melbourne’s is about to hit $800,000 itself, causing a few giddy moments here at home too.
As Treasurer Scott Morrison flies to London to seek advice on housing affordability, first home buyers can do little more but watch on as their hopes of getting into the property market get harder.
Melbourne’s house prices have grown consistently for the last four years and its median house price now sits at $795,447 with further moderate growth predicted for 2017.
If you compare that to this time last year, the median price then in the city was $719,486.
Melbourne’s median unit price has risen to $459,181.
Domain Group chief economist Andrew Wilson says house prices should rise by around 4-5 per cent this year, making it particularly hard for first home buyers because in the current economic climate there’s not much wage growth, healthy migration levels driving the market competition and rents are rising making them spend more while they’re trying to save.
On top of this it’s harder to get a loan at all while banks clamp down on lending practices.
First Home Buyers Australia co-founder Daniel Cohen told Domain many first home buyers bought a property as soon as they had the minimum deposit together.
“It has never been harder to buy your first home,” he said.
Strong market conditions are also forcing more properties to auction, making competition even stronger between first home buyers, investors and developers.
The importance of getting your foot in the property door has never been greater, speak to Perry Finance today about your finance options for securing a property for your future.