The Sydney median house price rose to $1.3M in the first quarter of 2021.
It is the highest leap housing prices have taken in 28 years, with an 8.5% increase.
Housing prices in six other capitals have hit a high as well.
Second to Sydney was Melbourne, with the median price at $975,000, a 4.8 per cent growth in just three months.
A significant increase in median price was recorded in Hobart, with the prices hitting $600,000, putting it above other cities including Adelaide, Perth and Darwin.
Hobart has always been a tough market to buy property.
Rents have always been very high in Hobart, given the limited space for new buildings, so the number of properties for sale in the city doesn’t improve very often.
For the city to be more expensive than Adelaide and Perth, both more in-demand locations, shows a big supply issue in Hobart.
An overwhelmingly uneven supply-demand side (dominant supply-side) and the low interest rates have acted as a catalyst to this rare median growth rate.
The senior research analyst Nicola Powell considers the rare median price growth rate a short-term event. And that, the median house prices in cities will drop within the next month.
What does this mean for sellers?
Since the market demand side is dominant over the supply side, the property market is currently a seller’s market.
So, for the sellers, this is the best time to put their property up for sale.
For attracting buyers to your house you wish to put up on sale, renovating your housing property can help with a higher valuation.
What does this mean for investors and buyers?
The best option for both buyers and investors is to wait a month to see if the prices go down. Like this, if they are taking a home loan, their serviceability increases, they can contribute more on the deposit, and their repayment amount will also decrease.
For the investors taking an investment loan, waiting for the prices to drop from the current rare median price hike will help their profitability to increase.
If you are looking to reconstruct or renovate your house, we can help!
Please talk to us on 1300 889 743 or enquire online to connect with one of our expert mortgage brokers.