Only a handful of houses in Australia are closer than the median value at $1m.
Domain’s latest quarterly report showed that September’s national median house price was $994,579. This is a 3.5% quarterly increase and 21.9% annual growth.
Three cities — Sydney, Melbourne, and Canberra — recorded median house prices that are over $1m.
The gains in the unit-market were modest. The median price at $609,642 has seen values rise only 1% each quarter and 6.8% annually.
Sydney house prices below $1.5m
The record-breaking house and unit prices in Sydney are now. The latter has risen by $6,700 per week over the past year to $1.49m.
New South Wales Capital had a 30.4% increase in home prices each year. This is the highest annual increase ever recorded.
Unit prices reached an all-time high of $802,475, surpassing the peak in mid 2017.
The report indicated that buyers struggle to save money even with recent price drops.
“This has resulted in the number of home loans for NSW owner-occupier first home buyers dropping 21% from the recent March high,” the report said.
“Upsizing can also come with a lot of financial risk, despite the many benefits of strong equity growth. It can be especially challenging if you are selling before purchasing. The 13% drop in NSW homeowner loans for owner-occupants since March is a clear example of this.
Melbourne has a lot of potential for growth
The gains in Melbourne’s house and unit prices for the quarter were still small compared with other capital cities.
Despite this, both types remain at record highs throughout the city.
The report states that Melbourne experienced the second-lowest rate of price growth since the pandemic. This could be a sign that Melbourne is ready for growth after it is released from lockdown.
Despite the fact that the lockdown was only for the September quarter in Melbourne it meant that the annual price rise for Melbourne homes was the highest since 2011.
Domain noted that longer lockdowns are causing more buyers to choose larger homes.
According to the report, house prices rose almost three times faster than units over the past year. This has resulted in a record-breaking price gap.
Canberra breaks $1m price tag
Despite restrictions and lockdowns in Canberra, house prices rose 5.7% to an all-time high $1.07m.
Canberra experienced its highest ever annual increase of 32.4% during this quarter.
“Buyers continued to operate in a sellers’ market due to the heightened competition in securing a sale and exaggerated reduction in supply throughout lockdown weeks,” the report said.
Another bright spot was Canberra’s Auction Market. It has achieved an average clearance rate of over 80% in each month so far this calendar year.
Domain reported that Canberra’s house prices are influenced by Canberra’s high-end market. This has been the trend for the past quarters.
According to the report, “While all areas have set new house prices records, price growth at higher end market is beginning to slow, suggesting that the peak in price growth is over.”