Can you guess the median Australian house price in 1976?

Many of us have heard or experienced stories about the "one that got away" in the property market. It's that property we could have purchased at a fraction of today's prices. The hindsight can be both fascinating and regretful.

Back in 1976, median house prices in Australia's capital cities looked quite different compared to today:

• Sydney: $36,800

• Canberra: $35,100

• Melbourne: $32,900

• Adelaide: $29,800

• Hobart: $31,575

• Perth: $33,000

• Brisbane: $26,275

A few interesting points emerge from these figures:

1. Property prices seem remarkably cheap when viewed from the present, even though they didn't feel inexpensive at the time.

2. Brisbane was the most affordable capital city, significantly behind Hobart and Adelaide.

However, it's crucial to keep things in perspective: The average wage in the mid-1970s was around $6,000, meaning the median house price in Sydney was nearly six times the annual income. Fast forward forty years, and both wages and house prices have increased, although not at a consistent pace.

Sydney's median house price is now 27 times higher than it was in 1975. If wages had kept up with this pace, the average wage today would be approximately $162,000.

Several factors have contributed to this, including more two-income households and historically low interest rates that enhance affordability.

Now, let's take a look at median house prices in October 2023, according to CoreLogic:

• Sydney: $1,110,660

• Melbourne: $766,716

• Brisbane: $761,739

• Adelaide: $691,591

• Perth: $618,363

• Hobart: $658,994

• Darwin: $493,362

• Canberra: $836,327

Despite the challenges, Australian property markets have shown resilience and strength. While some locations may seem expensive, the hindsight of wishing you could buy your parents' house for what they paid years ago is a common sentiment.

While we can't predict the future with certainty, it's reasonable to assume that property values will continue to grow over the long term, driven by a growing population and the overall wealth of the nation. Entering the property market can be a smart move, but it's crucial to do thorough research, assess your financial situation, and have clear investment goals.

Diversifying your investment portfolio is also wise for risk management. Always consider seeking advice from financial experts and real estate professionals when making significant investment decisions.