Median House Prices in Sydney Past $800,000
In an article for the website Property Observer, Jonathan Chancellor talks about the latest spike in Sydney median housing prices. From $787,000 for the March quarter, it has risen 3.1% to stand at $811,837 for the June quarter.
Median house prices in Sydney register a new record
House prices in Sydney have shot up by close to $118,000 over the last year and many areas including the distressed North lower shore has seen a hike in median price by 4.4% this year. This is especially good news as this zone has seen some really turbulent times since the Global Financial Crisis.
South West Sydney has picked up quite belligerently over the last half year while the Eastern Suburbs has trailed behind in terms of the median house price growth.
You can read the original article here.
In my opinion, there are various reasons why the median prices are showing an upward curve. Consumer sentiment is rallying well and people are doting over the property market, leaving aside the traditional blue-eyed baby, the equity market. Low interest rates are only helping the cause.
Fierce competition between different hierarchy of buyers
The growing competition between investors and owner-occupiers and the fact that the first home buyers (elbowed out by the foreign investors) will seek redemption will make the median prices shoot up even further.
Buyers able enough to pay almost anything
Greater job security and appreciable creditworthiness has given buyers higher liquidity and purchasing power. Thus, in areas facing chronic undersupply, prices will climb past the roof because buyers are in a position to pay for any amount; one that is even considerably beyond their budget.
How do you see undersupply affecting median prices in coming times?