In an interview with the ABC’s AM program, Real Estate Agents Australia’s chief executive Chris Gatt said he believes the cost of living is becoming too high in Australia, and there’s a “tipping point” for homeownership.
“The median home is selling for more than $200,000.
That’s $160,000 more than the median income,” Mr Gatt told AM.
“That’s a lot of money that people have been paying into their home and that’s a bit of a problem.”
He said the trend was particularly troubling given that the cost to buy a home had not been rising as quickly as house prices.
“What you’re seeing is a really big difference in real estate prices, particularly in Sydney, Melbourne and Brisbane,” he said.
“People are really trying to find somewhere to live.”
Mr Gatten said the real estate market in Australia was still “ticking at the end of the bell curve” and “trying to catch up with the rest of the world”. “
In Sydney, there’s been a big shortage of homes, especially with the price of the property rising.”
Mr Gatten said the real estate market in Australia was still “ticking at the end of the bell curve” and “trying to catch up with the rest of the world”.
“There’s no reason for that to be the case, you just have to have the right people buying houses in a good market to be able to support the population.”
Real Estate Agents Association chief executive officer Chris Gett says Australia is too expensive to buy an apartment or house Source: News Corp Australia He added that the real price of houses in Australia had not kept up with other countries.
“It’s a very, very competitive market in terms of what you’re paying for,” he told AM, “so if you’re a house buyer in Sydney you’re probably paying more than a typical house buyer and you’ve probably got a higher mortgage than other houses.”
Mr Gillard has pledged to reverse the trend.
He announced on Thursday the government would introduce a 30 per cent tax on the highest-value properties to help reduce the cost for homeowners.
In Melbourne, the average home price has jumped by almost 40 per cent in the past five years, to $1.45 million.
Mr Gatt’s comments echo those made by Melbourne real estate agent David Gatt, who said the housing market was becoming too expensive in Australia.
”We have a problem in Australia because people are just not willing to pay that kind of money for a home,” he added.
Australia’s real estate sector has experienced an eight per cent drop in the price index since January, according to data from real estate research firm CoreLogic.
CoreLogic’s data shows the median house price in Melbourne has dropped by nearly $1 million since last year.
According to the Australian Bureau of Statistics, more than 90 per cent of Australian households are now earning less than $35,000 a year.