When it comes to house prices, only one thing is certain: we know nothing. The housing market is extremely unpredictable and for most Sydney-siders, unaffordable. Look no further than the North Shore for an example of this. Stephanie Stefanovic reports.
Recently, NSW Treasurer Joe Hockey faced immense criticism after declaring that “if housing were unaffordable in Sydney, no one would be buying it”. He advised would-be home buyers to “get a good job that pays good money”. For many Sydney residents, though, it’s just not that simple.
According to the Urban Development Index of Australia, the increase in the cost of housing over the past few decades has greatly outstripped increases in income.
Based on the 2011 Census, the average yearly household income (before tax) is $75 244 a year. With the median Sydney house price at $900 000, this means the median Sydney house price is more than 11 times the annual wage. This gap continues to grow as the years go on.
Traditionally known as an affluent and expensive area to live in, the average price of a house on Sydney’s North Shore is approximately $1.5 million. However, there is an increasing number of properties selling for over $4 million, says Craig Marshall, principal of the Cordeau Marshall Group.
With prices like these, many experts agree that it will be difficult for the children of North Shore parents to buy property in the area.
“House prices are driving young people out,” says Mr Marshall.
“People are moving out of the area and coming back when they can afford it.”
Some experts disagree, however. “I don’t think it will be difficult,” says Andrew Braid, a licensee for LJ Hooker.
“The property market moves in cycles. Should prices be high, simply take some extra time to save and wait for the market to move.”
“My advice would be to research past sales and look at everything on offer. Speak to all the agents in the area and let them know of your requirements. And be ready to act. Your perfect home may pop up tomorrow so have your ducks in order,” says Mr Braid.
