couple mural house

Although the median house price in Sydney is set to fall below $1 million, it is harder than ever for most people to buy one. One would think falling house prices would make it easier to get into the market, but that's not the case.

The reason, according to Domain senior research analyst Nicola Powell, is that lending conditions have become more stringent. There are also fewer investors and foreign buyers in the market and more stock. Since the peak in mid-2017 the median house value has dropped $1700 per week - $4000 per week on the lower north shore. Unit prices have held up a bit better because people need to borrow less for them. The fall overall is suspected to be at the point of bottoming out.

FYI, as a general rule, any amount you borrow for a 30 year loan term will end up with you paying about double what you borrowed. So if you make regular payments on a $1million loan you will have paid $1,932,557.84 after 30 years, assuming regular repayments of $5,368.22 every month at a steady 5% per year. Inflation is your friend!

Read more at Domain.com

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