Australia Ranked Third as the Most Expensive Housing Market in World

The average mortgage rate of Australians exceeded by $500,000 for the first time, which seems uneasy for Aussies as it broke into the housing market. This event indicates that Aussies are paying out nearly 13 times of their yearly income to procure properties as shown in the 14th Annual Demographia International Housing Affordability Survey.

According to the report of the comparethemarket.com.au, the average loan size of the country bolstered to $500,400 during the fourth quarter of 2017. New South Wales (NSW) had contributed a lot to the increase of national average, as the state gained more than $613,000. While the average loan size of Victoria surged higher by $496,800. In addition to it, Sydney and Melbourne were also regarded to be the least affordable major housing markets around the globe.

Among the 92 listed major metropolitan markets, Sydney gained the second least affordable behind Hongkong, Vancouver was in the third place, followed by San Jose, California and Melbourne at the fifth.

The home prices in the capital city declined by 0.2 percent in the previous week, but Sydney values had reduced twice as to the national average and its cooling market generated 0.4 percent losses in the week until January 21, as stated by the property-information group CoreLogic.

Moreover, the prices in Melbourne dropped to 0.1 percent while in Adelaide, Brisbane and Perth remained unchanged. Last year, the average home values of the mentioned capital cities rose by 3.6 percent, led by Melbourne with 8.4 percent increased.