Australian median house price exceeds $650,000

Australia’s housing market continued its growth in the first quarter of 2015.

The median house price in Australia has gone up yet again as the housing market continued its growth in the first quarter of 2015, according to the latest Bendigo Bank/Real Estate Institute of Australia Real Estate Market Facts publication.

“The weighted average, capital city median price increased by 2.4 percent for houses and 1.5 percent for other dwellings,” said REIA President Neville Sanders. “The weighted average, median house price for the eight capital cities is now $658,608 and with exception of Brisbane and Perth all capitals contributed to the increase. A 6.8 percent jump in Darwin was the largest across the capitals.”

In the March quarter, the median house price in Sydney reached the $900,000 mark and is now well above it at $929,842. The weighted average, median price for other dwellings for the eight capital cities was $517,929. Over the quarter, most capitals recorded increases; however prices fell in Adelaide, Perth and Canberra. Hobart had the largest jump across the capitals with the median price for other dwellings going up 5.7 percent.

“In 2015 we expect interest rates to stay low and growth in dwelling prices to continue, however changes to rules around foreign investment in Australian residential real estate may change the dynamic on the market,” said Sanders.

More parents guaranteeing home loans

Would you guarantee a home loan for your children or grandchildren?

Australian parents are increasingly putting their assets on the line by guaranteeing home loans taken out by first home buyers, new figures from National Australia Bank show. The proportion of first home buyers securing loans with a relative acting as guarantor has increased from 4.8 percent in 2010 to 6.7 percent.

With the backing of a family member, first home buyers with relatively small deposits can secure loans without mortgage insurance.

“It’s getting a lot tougher for first home buyers to enter the market. The rise in house prices has been pretty well-documented, particularly in Melbourne and Sydney, where prices have increased by circa 50 per cent since 2008,” NAB’s executive general manager for consumer lending, Angus Gilfillan, told The Australian Financial Review. “All of this means that first home buyers need a larger deposit and we’re seeing that first home buyers are, effectively, being crowded out of the market.”