Dilapidated Queensland home sells for staggering price in more proof Australia's housing market has gone mad

A severely run-down Queensland home has sold for almost $800,000 in an ominous sign for buyers in an increasingly tightening property market.  

The property, located in Mitchelton, about 10km northwest of the Brisbane CBD, was snapped up earlier this month and features 'two spacious bedrooms,' a third bedroom/sleepout, a main bathroom, and an open-plan living and dining area. 

The Realestate.com listing describes the home as 650m2 of 'prime land' that you can 'empty, renovate or simply detonate'. 

'The house has seen better days, but it's all about the land here,' the listing stated.

'Its supreme location holds a vast opportunity for growth.' 

Pictures accompanying the listing show the exterior of the house in extremely poor condition, with faded paint and pieces of wood strewn around the perimeter. 

The interior is no better, with images showing piles of junk and clothing covering surfaces in the living areas and bedrooms.

The bathroom is dilapidated, with the vanity falling away from the wall. 

Some unusual items can be seen, including including a giant watch clock, a retro television and even a jar of vegemite.  

Parts of the roof can be seen peeling away and the stairs at the rear of the house have been replaced with a crooked ladder. 

The property was sold 'as where is', meaning the buyer managed to score the entire contents of the home on top the house and land. 

Even the real estate agents expressed little hope of the home's potential, declaring  that 'it might be easier to start again'. 

The house sold for less than the median house price for Mitchelton, which currently sits at $926,500. 

According to PropTrack data, the median home value in Brisbane last month was $773,000, an increase of more than 7 per cent over 12 months.

For the rest of Queensland, the median house price is $622,000 while the national median sits at $759,000. 

This month, the Reserve Bank hiked the cash rate for the 13th time in 18 months to a 12-year high of 4.35 per cent, leaving many mortgage-holders struggling to keep up with their repayments.

The Melbourne Cup Day rate rise was designed to stem rising inflation, with the consumer price index (CPI) in the year to September rising by 5.4 per cent.

Even before the last rate rise, it was revealed that almost half of Australia's mortgage holders are in financial stress, paying at least 30 per cent of their income to service their loans.

Households diverting at least 30 per cent of their disposable income to service a mortgage will account for 48.5 per cent of total borrowers by the end of the year, according to the Australian National University's Australian tax and welfare system model.