Buyer beware, as prices in many of Australia’s biggest cities have risen by more than 50% since the start of the year.
In Sydney, where the median price of a house has jumped by almost 30% since July, buyers can now expect to pay a premium of almost $4,000 over the average asking price.
A year ago, it was $1.8 million.
While a house on the market today would normally cost more than $1 million, a benchmark home could sell for as little as $2 million, according to Domain Group, a market research company.
While prices have risen over the past year in major cities like Melbourne, Sydney and Adelaide, they have fallen in Perth and Adelaide as well.
At the same time, the price of real estate in the country’s largest cities has increased by more the year, according to Domain Group.
A house in Sydney can fetch as much as $1,935,000, while a house in Perth can fetch up to $1million.
The Australian Bureau of Statistics (ABS) released its national home affordability index, which measures how many homes are worth more than the median house price in each state and territory.
The index showed Melbourne, Perth, Sydney, Adelaide and Brisbane as the most affordable places in the nation.
In contrast, Sydney was ranked number 11, Adelaide number 14 and Brisbane number 17.
In terms of affordability, Sydney has seen the biggest price rises, while Melbourne and Perth have seen the smallest price rises.
It’s not just Melbourne and Sydney, but also Brisbane and Adelaide where prices have jumped more than 20%.
In Sydney and Melbourne, average price increases have averaged more than 40%.
In contrast with the average price in the US, where a median price in January was $350,000 and $350k, it is now $2.3 million, $3.6 million and $3m, respectively.
For the year to date, Sydney’s median price is $2,903,000 while Melbourne’s is $1,-3.5m and Perth’s is just over $1m.
Australia’s biggest city is also a prime location for foreign investors to buy.
In July, the Sydney Stock Exchange reported that the value of the Sydney real estate market is worth an estimated $1 trillion.
As of August, the value was $2 trillion, according the Sydney Morning Herald.