$1.4m median house price in Sydney distancing Aussies and their first home dream

Despite the global pandemic and Australia being largely cut off from the rest of the world, house prices throughout the country are soaring

Boosted by all-time low-interest rates and a lack of available properties, six cities have seen record-high prices for the third quarter in a row.

Over the last 12 months, homes in Sydney, Canberra and Darwin have risen by 20 percent in value, as experts warn the market is quickly becoming “unsustainable”.

The Domain House Price Report says the country is experiencing the perfect mix between low-interest rates, a limited number of available properties, strong demand and large government stimulus in the wake of the Covid pandemic.

This report has certified the views of some economists who say the housing market is unsustainable and out of reach for many young Australians and first-time buyers.

“This is a very unusual rate of growth. Unusual circumstances create extraordinary outcomes,” chief of research and economics Nicola Powell said.

Sydney, Australia’s most populous city, saw median house prices reach a record A$1,410,133

Sydney house prices soared by almost $1,200 a day over the June quarter, a total rise of $107,000, to a new record $1.41 million.

Prices rose more than 8 per cent over the past two quarters, a rare growth only seen three times over the past 30 years.

When compared to this time last year prices have jumped 24 per cent, a record performance that has exceeded the boom time results of 2015 and 2002.