The cost of buying a house has hit a record high but increases are slowing, data reveals, as the housing crisis continues to grip Australia.
According to data provided by PropTrak, house prices hit a record high in November, climbing 0.22% over the past month. They now sit 5.53% higher than the start of the year, and 1.29% above their previous peak in March 2022.
All capital cities except Darwin have recorded record highs.
The dire stats come as it was revealed the housing market is out of reach for anyone on an average salary, with a median annual salary of $300k needed to purchase a home in Australia.
Senior Economist Eleanor Creagh said that inflation will continue to rise, but prices were expected to slow down.
“Looking ahead, price growth is expected to continue as the positive tailwinds for housing demand, and a slowdown in the completion of new homes, counter the sharp deterioration in affordability and slowing economy,” she said in a statement.
“However, prices are likely to lift at a slower pace than they have across 2023.”
Sydney remains the most expensive city to buy a home in, with the median house costing more than $1 million, however Perth has had the largest annual increase with the average house price rising 12.7% to $622k.
Creagh said that house prices had slowed for a number of reasons, despite higher interest rates.
“Strong housing demand, buoyed by record net overseas migration, tight rental markets, low unemployment and home equity gains, has worked alongside limited housing stock to offset the impacts of higher interest rates this year,” she said.
Nationwide, agencies have been calling out for governments to build more state housing. Speaking to PEDESTRIAN.TV, Renting and Housing Union (RAHU) spokesperson J. R. Hewitt said suburban development was key to easing a housing shortage.
“We need to build approximately 300,000 homes by 2040 in Victoria alone, and one million across the entire country by 2040,” he said.
“We need more mixed-use construction and we need to rebuild existing suburbs starting of course where trains currently are or where we want them to be.”
Governments have been receiving advice on the housing crisis. Earlier this week, a report was tabled to the Victorian government urging them to build 60,000 social houses over the next decade.
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