Core Insights - Sydney is projected to become the most expensive city in the world for housing within the next 12 months, with a median price-to-income ratio of 13.8 times [1][7] - The Demographia International Housing Affordability Report highlights that Australia is one of the least affordable housing markets globally, with no major market meeting affordability standards [1][3] - The report indicates that other major Australian cities like Adelaide, Brisbane, and Melbourne also have high price-to-income ratios, contributing to the overall housing affordability crisis in the country [1][4] Housing Market Trends - Australia's median house prices are now double those in the United States and significantly higher than in the UK, reflecting a dramatic increase from a median multiple of 2.8 in 1987 to over 5.6 today [3] - The report ranks Sydney second globally for housing affordability, with other cities like Adelaide and Melbourne also ranking high on the list of least affordable markets [4][7] - Recent auction activity in Sydney has shown a surge in buyer interest, with a notable auction resulting in a property selling for 5.5 million AUD after a competitive bidding process [8][10] Auction Market Dynamics - The preliminary clearance rate for major cities reached 70%, indicating a robust auction market following recent holidays and elections [8][10] - Sydney's auction market is experiencing a significant increase in participation, with an average of 8.3 registered bidders per auction, more than double the usual level [10] - Factors such as anticipated interest rate cuts and a clear election outcome have contributed to improved market confidence among buyers [12]