First-home buyers

House prices now ‘unaffordable’ for many average Australians

PHOTO: First home buyers. FILE

A sobering report by real estate professionals has said property prices are “increasingly unaffordable” and Australians may never own a home.

First time home buyers are all too aware buying their first pad right now is a struggle.

Now that’s been confirmed by the industry itself with real estate professionals darkly warning large numbers of “average” Australians “may never be able to enter the property market” given the inexorable rise in prices.

That sobering residential reality comes as it was confirmed Sydney house prices had soared. The average house is in the Harbour City is now going for $1.1 million with units at $800,000.

A typical Sydney house is now about $117,000 pricier than it was at the end of February. Industry organisation the Australian Property Institute (API) and tech firm The Search People surveyed almost 600 property valuers across Australia to gauge their attitudes to the property market.

Property valuers conduct detailed inspections of homes, looking at the number of rooms and size as well as a property’s condition to ensure it’s fit to be bought or sold, is priced correctly and if any improvements need to be made to make it market ready.

Homes are increasingly out of reach. Picture: Jenny Evans/NCA NewsWire

Homes are increasingly out of reach. Picture: Jenny Evans/NCA NewsWire Source: News Corp Australia

Almost half think property ‘unaffordable’ for average Australian

The report found 59 per cent of valuers believed the Australian housing market was currently in a bubble. While 55 per cent thought most homebuyers were over capitalising on their purchase.

Most damningly, 43 per cent of valuers said property was now essentially out of reach for the “average” Australian.

“The likelihood of owning a home is becoming increasingly low as residential property becomes unaffordable for the average Australian,” the firms stated.

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