House prices to double

The average Melbourne house will double in value by 2021 to $1,056,199 from $525,000 last month according to property research company BIS Shrapnel.

Low interest rates, the rising cost of materials, a shortage of new homes and a growing population are predicted to keep pushing prices higher.

For a $1 million median house price, most home loans will start about $900,000, requiring repayments of $1337 a week if interest rates remain about 6 per cent.

Source: Herald Sun