Million Dollar Homes
The Real Estate Institute of Victoria recently predicted that the median house price would be $1 million dollars in Victoria in ten years time. You may think that sounds extreme, but a quick breakdown shows otherwise.
Let’s first take a look at what has happened to the median house prices over the past 10 years. Using information from Residex.com.au we can estimate the median house price in 1999 for the following cities:
- Sydney: $315,000
- Melbourne: $199,000
- Brisbane: $150,000
In 2009, Residex valued the median house prices of the same cities:
- Sydney: $615,000
- Melbourne: $519,00
- Brisbane: $459,000
Over this ten year period house prices almost doubled in Sydney, and easily more than doubled in Melbourne and Brisbane. If house prices continue to increase at a similar rate over the next 10 years, all these cities will have a median house price of over $1 million dollars.
Flinders Institute of Housing, Urban and Regional Research professor Joe Flood recently said that ‘the writing is on the wall for the Australian dream. The country that promised limitless land, cheap housing and near universal home ownership to all comers now has the most expensive housing in the world.’
While house prices fell sharply in the US and declined in Europe as the Global Financial Crisis took hold, the same has not happened here. The Australian government’s recent removal of the first home owners boost and the Reserve Bank of Australia rising interest rates may momentarily halt rising house prices. In the long term however, Australia’s strong population growth and widely rumoured housing shortage will ensure owning your own home becomes increasingly more expensive.
If you are thinking of getting into the housing market it may be better to do it sooner rather than later. Whenever you do decide to buy, your credit union will be there to help. Our website has a lot of information on purchasing property, and our staff members have a wealth of experience in helping people to find the best home loan.