Sydney property hits peak insanity: Median house is now $1.5 MILLION, meaning even with 20% deposit you'll be paying $5,000 a MONTH in repayments - and the news isn't much better elsewhere in Australia
- Real estate sales group Domain has released new data on house, unit prices
- Sydney's median house prices surged 30.4 per cent in a year to $1.499million
- A capital city house in Australia is now typically priced at $994,579 after big rise
Sydney house prices have surged by $957 a day to a very unaffordable $1.5million - with monthly mortgage repayments approaching $5,000.
A typical home with a backyard in an Australian capital city now costs $1million, with three capital cities having mid-point prices in the seven figures.
Real estate sales group Domain has revealed the true extent of the national housing affordability crisis as record-low interest rates spur a Covid property boom.
The ability of more people to be able to work from home has also seen house prices surge at triple the pace of apartments.
In the year to September, Sydney's median house prices soared by a ridiculous 30.4 per cent to $1.499million.
That means monthly repayments of $5,000 a month on a 30-year mortgage, even with a 20 per cent deposit factored in, if the mortgage rate has a three in front of it.
Even if a borrower, paying off principal and interest, fixed their loan for three years at a lower Commonwealth Bank rate of 2.29 per cent, they would still be owing $4,600 a month.
Sydney house prices are surging by $957 a day while a typical home with a backyard in an Australian capital city now costs $1million
The $349,298 rise in Sydney house prices from $1.150million equated to a daily increase of $957.
The affordability crisis wasn't confined to Sydney with capital city house prices climbing by a record 21.9 per cent to $994,579.
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Sydney, Melbourne and Canberra now have mid-point house prices in the seven figures.
The Domain sales figures were taken before the Australian Prudential Regulation Authority, the banking regulator, announced lenders would be required to model a potential borrower's ability to cope with a three percentage point increase in mortgage rates.
With the banks still offering fixed mortgage rates of 2 per cent, Domain chief of research Dr Nicola Powell said buyers feared missing out.
'Customers are borrowing more to keep up with rising prices and further driving house price growth,' she said.
But Dr Powell anticipated a slowdown in the strong growth as new lending rules came into effect from next week.
Brisbane's median house price rose 15.3 per cent to $702,455 (pictured is a house on the market at Eatons Hill)
'This may start to slow down as new serviceability measures are implemented from 1 November,' she said.
Sydney wasn't even the market with the steepest price rises with Canberra's median house price increasing by 32.4 per cent to $1.074million.
Hobart house prices rose by 31.9 per cent to $698,212 while Darwin's equivalent value for a home with a backyard increased by 33.2 per cent to $640,068.
Perth was the only capital city market where prices didn't increase in the double-digits on an annual basis, but only just, with median values rising 9.8 per cent to $598,601.
Brisbane's median house price rose 15.3 per cent to $702,455 and Melbourne's mid-point increased by 16.8 per cent to $1.038million.
Adelaide house values went up by 20.1 per cent to $667,888.
Australia is now a tale of two property markets with house prices soaring as apartment values grow at a slower pace or even go backwards.
