‘It’s been hell’: underquoting in hot housing market frustrates young buyers | Housing

Every three or four weeks, the neighbours say, the scene is the same. It is a cold Saturday morning in Dulwich Hill in Sydney’s inner west, and dozens of hopeful buyers have turned out for an auction. It’s a two-bedroom house on a nice street, near the park. The price guide is $1.25m. The street is full, and every one is wary.

Michael and Tom, a young couple, are there – along with Michael’s family for support. They say that house hunting is “hell”.

“You could write 20 pages on the young people [who can’t get into the market],” Michael’s mum tells Guardian Australia.

“One auction last weekend went for about $400,000 above [the price guide],” Michael says. “So, it’s been hell. Pre-approval takes forever now. And it’s just, well, the guides are ridiculously low. For every property. Every property.”

As Sydney’s property prices skyrocket, rising a record 8.5% in only the past three months, prospective…

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