Prices in 2019 have continued to increase and the median sale price is now very close to $500k. This in comparison to only $400k a year ago and $300k in 2016.
Interest rates remain low which increases affordability, although most banks use quite a big margin in their calculations to make sure people don’t overcommit.
With the increased house prices, it is often the size of the deposit that limits people’s budgets. The market remains tight, but there is more flexibility in the market to purchase a property subject to a house selling.
This allows people to safely buy a house and then sell, without the risk of being without a home. In 2020 we will likely see a continuation of increasing house prices and a market where the sellers typically have the advantage.
With house prices being pushed to a new high, it will be more challenging for first home buyers, which will have an effect on houses in all price brackets as there is a flow-on effect as people move from one price bracket, into another. We need the affordability at the lower end to allow people to move at the top-end.