You’re further away from buying your first property than ever before.
That’s the face-slapping implication of the latest property market reading from RP Data, which shows the average Aussie capital city property costs a belt-tightening $559,000.
That’s the average.
If you want to live in the Apple Isle, you’re looking at a median price of just $315,000. At the other end of the spectrum, the starry lights of Sydney will sting you $705,000.
And, unfortunately, the outlook isn’t pretty for those grasping for a foot on the slippery first spoke of the property ladder.
“If you’re a first home buyer struggling to get into the property market this year, next year isn’t looking to get any better,” is the sobering advice of Domain Group property pundit Dr Andrew Wilson.
Wilson was one of 37 experts surveyed by finder.com.au last month for their view on interest rates and property prices, and pretty well speaks for the crowd with that sharp bit of advice. Twenty-five of the 37 leading economists and experts asked – including from all four major banks – are expecting property prices to continue rising.
AMP’s Shane Oliver also chimed in along these lines, albeit with a more subdued two-cents worth.
Oliver tells us that “while home prices are likely to keep rising in 2015 the pace of increase will likely slow, particularly in Sydney and Melbourne.”
Here’s a whip around the capital cities:
Annual Growth/Median Dwelling Prices @ 31 Nov, 2014
Sydney – 13.2% / $705,000
Melbourne – 8.3% / $568,500
Darwin – 1.4% / $540,000
Perth – 1.4% / $515,000
Canberra – 1.7% / $511,200
Brisbane – 6.0% / $447,000
Adelaide – 2.8% / $400,00
Hobart – 5.2% / $315,000
Average – 8.5% / $559,000
So it’s pretty clear that if you want to buy a place in this relentlessly rising market, you’re going to have to put in a hard slog.
And as much as you don’t want to admit it, that starts with drawing up a proper budget. Here’s a template to get you get going.
Image: Daniel Oines, via Flickr