Sydney house prices might finally decrease,
After years of significant price increases, momentum in Australia’s property market is finally diminishing, according to CoreLogic’s latest Home Value Index.
Only four of Australia’s eight capital cities experienced price growth during the September quarter, which includes Sydney, Brisbane, Adelaide, and Perth.
In contrast, all other capital cities reported a decline in median home prices during the same period.
Moreover, even in the previously booming cities of Perth and Adelaide, the growth rate has notably slowed down.
Specifically, Perth saw an increase of only 4.7 percent over the past three months, a decrease from 6.2 percent earlier.
“Essentially, we are witnessing a slowdown in growth rates across nearly all markets,” said Tim Lawless, CoreLogic’s research director.
Furthermore, “Sydney hasn’t recorded a growth rate this low over a quarter since the very beginning of the cycle in February 2023.”
During the September quarter, median home prices in Sydney only rose by 0.5 percent, indicating a potential trend moving forward.
“In larger markets such as Sydney, it appears that the market is poised to stabilize, possibly entering a shallow downturn,” he explained.
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“In six months, I anticipate we will likely see a continuation of this decline in market momentum,” Lawless stated.
Several factors have contributed to the downturn in home prices. These include an increase in available housing stock and slower population growth.
Additionally, there is an expectation of an interest rate cut; however, one factor stands out above the others.
“I believe anyone would agree that we have experienced extraordinary levels of market volatility,” Lawless remarked during the discussion.
“It is quite illogical that the market remained so strong while interest rates are high and household debt levels are stretched.”
“We have navigated a robust housing market even though the overall economy has been relatively weak,” he added thoughtfully.
Moreover, “I believe we are finally beginning to see the impact of affordability pressures on the housing market.”
