Revealed: Sydney house prices rise to new record – realestate.com.au

The average house price in Sydney has breached the $1.6 million mark for the first time, after rising nearly $120,000 in the past year.

New PropTrack data showed Sydney reached the milestone in late October, following another monthly growth spurt that saw home values ​​rise by an average of 0.6 per cent.

Cumulative growth for the year was 6.4 percent, which PropTrack said was “above the long-term average” for the market.

The average price of a house in Sydney is now $1.62 million, up from $1.5 million a year ago, while units have a median of $874,000, up from about $831,000 this time last year.

Economist Eleanor Creagh of the REA group said the increases were driven by three rounds of rate cuts this year, extensive government stimulus and a growing sense of urgency among buyers.

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These forces have increased buyer demand at a time when housing supply has remained tight, putting pressure on home seekers to spend bigger sums, Creagh said.

“It’s not just that interest rates have improved people’s borrowing power,” she said. “They have also improved market sentiment and created a sense among some buyers that prices will rise soon.

“That’s probably prompted a lot of buyers to bring forward their purchasing plans in the hopes that they can get a home (before) the market rises again.”

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Under the Hammer auctioneer James Hurley calls for bids at a recent auction in Hurstville. Photo: Monique Harmer

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Ms Creagh added that the Federal Government’s extension of the First Home Guarantee, which helps first-time buyers buy with as little as a 2 per cent deposit, added further fuel to the fire.

“It has increased demand at a time when there was already rising demand from other buyers, including investors. Inventory levels have not increased at the same rate, so competition has become fiercer.”

PropTrack indicated that competition was fiercest in Sydney’s more affordable areas for most of the year, but there has been a price increase in the more expensive regions this spring.

The eastern suburbs were the fastest growing market this quarter, with house prices rising by an average of 4.49 per cent.

Other fast-growing markets included the Inland South West, which includes much of the St George region, and Canterbury-Bankstown, which saw a 3.6 per cent increase this quarter.

Ray White Eastern Beaches estate agent Angus Gorrie said that since the extension of the First Home Guarantee, many buyers have developed a fear of missing out.

Buyer demand outweighs the supply of homes for sale in most areas. Photo: Richard Walker

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“Everyone is terrified of how much the plan will increase prices around them and they want in before it happens,” Gorrie said.

Two Red Shoes agent Rebecca Jarrett-Dalton said the introduction of incentives for first-home buyers coincided with a lackluster spring sales season, meaning fewer homes were available.

“If there is nothing to increase supply, the plan will increase house prices,” she said.

“The market is incredibly hot, and this could lead to a highly competitive environment for buyers, with many homes selling for hundreds of thousands over their reserve.”

REGIONS IN SYDNEY BY THREE-MONTH GROWTH

City region / 3 month growth

Eastern Suburbs 4.49%

Inner Southwest 3.60%

Parramatta 3.21%

Zwartstad 3.08%

Outer West and Blue Mountains 2.96%

Sutherland County 2.82%

Central Coast 2.80%

Outside Southwest 2.63%

Northern beaches 2.31%

City and Inner South 2.25%

Binnenwest 2.20%

North Coast 1.94%

Southwest 1.85%

Ryde 1.70%

Hills and Hawkesbury 1.14%

Source: PropTrack