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A new report has found that Australia’s median house prices grew to over $1 million in the December 2023 quarter.
A report released by the Real Estate Institute of Australia (REIA) – the Real Estate Market Facts – has revealed the national average of median prices across the eight capitals increased by 1.8 per cent for houses and 1.7 per cent for other dwellings.
This has equated to national median house prices rising to $1,005,242 over the December 2023 quarter, with median price increases for houses being recorded in all capital cities excluding Melbourne and Darwin.
According to REIA president Leanne Pilkington, these increases ranged from 1.1 per cent in Canberra to 7.5 per cent in Perth.
“At $1,595,310 the median price for a house in Sydney continues to be higher than in the other capital cities, 58.7 per cent higher than the national median. At $560,000, Darwin has the lowest median price for houses, 44.3 per cent lower than the national median,” Pilkington said.
“Over the 12 months to the December quarter, the national median price for houses increased at more stable rate of 5.3 per cent.”
The quarterly increase for other dwellings equated to $658,953, with increases seen in all capitals except for Hobart and Melbourne, ranging from an increase of 0.8 per cent in Canberra, and 4 per cent in Adelaide.
“At $795,994, the median price for other dwellings in Sydney continues to be the highest among the capital cities, 20.8 per cent higher than the national median,” Pilkington further stated.
“The lowest median price for other dwellings is found in Darwin, which at $405,000 is 38.5 per cent lower than the national median. Over the 12 months to December, the national median price for other dwellings increased 5.8 per cent.”
Affordability reaching ‘crisis point’
This data came as the REIA’s Housing Affordability Report for the December 2023 quarter revealed housing affordability for mortgagees reached a “crisis point” towards the end of the year.
The report observed affordability fall by 2.7 per cent over the quarter, with the average household spending 47.7 per cent of their income on mortgage repayments.
Pilkington said these results came as “no surprise” and that housing affordability for mortgage holders is “the worst on record” since the report was first published.
“Housing affordability in New South Wales, Victoria, South Australia, Tasmania, and the Australian Capital Territory (ACT) is at its lowest point in 20 years,” Pilkington said.
[RELATED: Home ownership is the largest factor underpinning financial wellness]
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