Real estate agents weigh profits against prices as property market finds yet another gear

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Tim Lawless,House Prices,First Home Buyer

Huge demand and lack of supply paint a grim picture for anyone saving to buy their first home, analysts warn.

What's next?Property price growth across the country is, again, shifting up a gear, and it's unclear when the market will cool.

The total value of residential dwellings in Australia rose by $209.4 billion to $10,720 billion in the March quarter. Australia is building more houses each year than it was in the past, but they're getting more expensive to construct.Decades of rising property prices have now pushed some city dwellers on a median income out of the property market altogether, according to Mr Lawless.

"It is a difficult one because you want to be able to balance affordability for people as well, it's not just looking at the bottom line of our business." "That's setting a new economic price that needs to be achieved in order for these new buildings to come out of the ground."For those still clinging to the Australian dream of home ownership, there is potential for a future period where prices fall or at the very least stabilise, according to Mr Lawless.

"Once you actually start investigating the market, bringing your expectations back in line with where these are in reality, can help."

 

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