Real estate prices have jumped to record highs in some parts of Australia, with Sydney and Melbourne showing the biggest gains.
Key points: Real estate agents are reporting record high sales in some areas, but the national average has slipped to its lowest level since March 2017.
The price index for Sydney and Brisbane has climbed to a record low of just below $800.25 million, while Melbourne has been the worst-hit market.
Sydney’s house price index has been at record lows in the past year.
Sydney house price growth has been slower than the national median and Brisbane’s home price growth is also slowing.
Melbourne’s house prices have also dipped, while Sydney is still growing at a record rate.
The National Association of Realtors (NAR) says the market is now at its lowest point since March.
“We’ve seen prices go up by a huge margin, which means we’re not seeing a return to the normal cycle,” NAR CEO Brian Fadden said.
“There’s a lot of people who are going to be very disappointed.”
Sydney real estate agent Ian Jones said he and his colleagues have been getting calls from people who were trying to buy homes in the inner west, where demand is also at record highs.
“When prices are so high it’s almost like a bubble, where there’s a massive amount of interest in the property,” he said.
He said he was seeing a surge in sales from those buyers, but that demand was not enough to overcome the price gap.
“The problem with the Sydney market is that there are still a lot more houses in the market that aren’t even being sold, so we’ve got to do everything we can to help people who want to buy,” Mr Jones said.
Sydney realestate agent Ian Lonsdale said he saw the NSW market being driven by foreign buyers.
“I have seen quite a few foreign buyers come in to buy properties in Sydney in the last few months,” he told ABC News.
“They’re buying for a quick cash flow, and that’s going to drive up prices in the short-term.”
The NAR says the median price in Sydney has risen by just under $1 million in the 12 months to March, while the median prices in Brisbane have risen by more than $600,000.
Sydney has experienced a slowdown in the housing market since the start of 2017.
Property market boom, bust, and housing affordability In the wake of the global financial crisis, property prices surged across the world, driving up the cost of homes and driving up home prices.
At the time, the market was a major financial driver for many Australian households.
Sydney property is now the hottest property market in the world.
But while prices in Sydney have soared, demand has been slow to come back to normal.
“This is the third or fourth time in the year we’ve seen this kind of slowdown in demand for Sydney homes,” NAF chief executive Peter Kavanagh said.
The NAF is now looking to address the problem by introducing a “housing affordability tax”.
The tax would force developers to charge higher property prices if their properties were more than a kilometre from schools, shopping centres and transport hubs.
In Melbourne, it would apply to homes in suburbs and other areas where there is a high demand for rental housing.
“Our aim is to drive demand for new housing in our suburbs,” Mr Kavanah said.
”We want people to be able to buy and sell property and have that supply and demand system back on track.