A significant number of home buyers and property investors want prices to fall

There is certainly a growing clamour amongst homebuyers for house prices in Australia to drop, but it isn’t just those looking to get into (or expand) the market. In fact, a survey by ME Bank released in November revealed that 37% of homeowners and 20% of those with investment property wanted the price to decline.

In a piece on The New Daily, industry observer Raymond Gill said this seems to indicate that prices have gotten out of hand, with half of those who wanted prices to drop citing housing affordability as the reason.

Also Read: Will the Australian housing market bubble burst anytime soon?

"While the astronomic prices rises of this year have tempered somewhat in recent months, it seems we still have some way to go in our dreams of ordinariness," he said.

Citing the CoreLogic Home Value Index, Gill said Sydney and Melbourne have recorded the strongest growth over the last decade, with the two cities capturing the ten biggest price increases.

In fact, the new housing development suburb of Wyndham in south-west Melbourne had the biggest jump in prices, up 129.9% from a decade ago, and now has a dwelling value sitting at $540,644.

Sydney's Pennant Hills-Epping recorded the second biggest increase in prices over the last decade at 126.2%.

With Sydney and Melbourne accounting for 40% of the population of Australia and 60% of all dwellings, Gill said this indicates that the cost of housing in Australia, considered overall, will remain far from what most of might be considered average.

"Only when house prices to fall and GDP rises to meet somewhere in the middle before we can consider ourselves relaxed, comfortable and determinedly average – just the way we like it," Gill noted.