Sydney median price hits $1.68 million

Sydney median auction house price hits record high - AFR 26/2

It’s reached $1.68 million in stunning activity across the city amid fierce buyer competition during a record month of clearance rates.

Could be $2 million by the end of the year.

 

WOW!!!

$1.68 Median. I was just predicting a few weeks ago it was going to hit $1.4-$1.5 by middle of the year. Already at $1.68M now? I guess all the recent sales figures are coming in.

Monster of all booms I'm telling you all. Never ever ever seen the property market like it is.

Is there any article on Brisbane Median now? I'm hoping its approaching at least the $1M Mark.

 

Understandable, as we have never seen interest rates this low before. Money is practically free creating huge pent up demand.

 

It WILL be $2M by end of 2021. Watch it happen.

 

I am not looking forward to next year's land tax bill.

 

The article is suggesting the median price for a house AT auction is 1.68m in the first paragraph then later said Sydney MEDIAN price is 1.21m

P.s if you use different providers median price you get different numbers

 

I think there will be a serious correction
1. No-one has expressed concern, government, individuals, and folks have forgotten, this is usually when it happens
2. Long term rates are rising globally which will eventually affect the banks’ cost of funding here - .5% rise in variable rates here will sink it

 

Which countries are raising their rates? I cant think of a single one. Wont be for a long time.

From what I have read ALL asset classes around the globe is going bonkers. US/Canada/NZ/Australia all the real estate is bananas at the moment.

Even my friends in Malaysia/HK and China all said its bonkers over there as well. I think its a global boom not just country specific.

 

Would be interesting to know how many people can afford entry costs at 2$M

 

Yes not many at all. The wealth divide is getting larger by the month. Like I said above though its not only Australia. This is an issue globally.

 

There was is 2018. Just not the massive crash the doomsayers/certain economists were praying for.

Not due for another one anytime soon in my estimation. Highly unlikely.

 

MP Tim Wilson is working on legislation to allow Australian's to access their super to buy property.

Super will be able to be used for the deposit, and with interest rates so low, affordability has been the best in 35 years: Loosening the mortgage belt: household interest payments at a 35-year low

 

You might want to hike rents now to pay for it.

 

First little hint of long term bond rates rising this month, maybe interest rates wont be low for as long as expected?

I'm already pretty invested so along for the ride aswell but the next few years will be interesting for sure. To quote Warren buffet, when the tide goes out you can see who isn't wearing swimmers.

 

@Robert Chatsworth @Sackie @thunderstrike888

Have any of you bothered actually reading the article? If you did you would of noticed it states house price at auction is 1.61m and Sydney median is 1.21m. They are two different metrics quoted. Sydney median is 1.21m and if anything it’s 50-100k up since then not 470k up in a couple months

 

Mate i didn't read the article. My emoji was to convey it would be amazing if it did reach 2mil during this boom period. I find it hard to believe it will, but I'm not against it. Markets are absolutely booming though. The frenzy in some places is insane.

 

I get it! It's just when ppl respond to a sensationalist belter sometimes you get lumped in the same category. Respect for your honesty

 

All good mate. I must admit, this property boom has taken me a little by surprise even though I'm generally mostly bullish about our markets over time.

I posted this link in another thread but ill post it here too, its an interesting perspective. Nothing mind blowing but i enjoy some of this guys analysis. I also think John on this forum has some good presentations.

I generally tend to agree and believe well likely see some plateau in around 2025ish.

But I agree with this guys insights into shifting demographic.
(9) Australian Property Market Update (2021) - Is An Accidental New Real Estate Boom Looming? - YouTube

 

So much of the banking sector are lending money for these properties. They won't want to see it go bust. Bank shares are held by big industry super funds. Nearly all Aussies, including politicians with the ability to change economic policies, won't want to see their retirement nest eggs shrink - they will have a vested interest in making sure the property market is kept propped up.

The only segment of the population wanting the property market to go down or "for the bubble to pop" are those who've not yet gotten a foot in the door. They want their unrealistic dream of $50k deposit and $500 a month mortgage to own their place next to the beach, with ocean views, dog park down the road, top notch medical centre around the corner, $5 cab ride to the city centre, within walking distance to their favourite cafe and restaurant spots, etc.