Sydney house prices down 10.1% since peak
- The $116,500 drop follows a 27.9% increase, or about $252,900, in the city’s housing values from the COVID trough to the peak.
- Melbourne home values have fallen 6.4% since January 14
- Darwin is the only capital not to have seen a drop in house values
Sydney home values have fallen 10.1% since the February 2022 peak of the current housing cycle, CoreLogic’s Daily Home Value Index has revealed.
The $116,500 drop follows a 27.9% increase, or about $252,900, in the city’s housing values from the COVID trough to the peak.
Tim Lawless, CoreLogic The research director, said it was no surprise that Harbor City leads the capitals in the current downturn, given that it is Australia’s most expensive city and is the more sensitive to rising interest rates.
“Although Sydney home values were already falling when the rate hike cycle began, the pace of decline accelerated sharply after the first interest rate hike in May,” he said. he declares.
“Sydney values are now down -9.5% since May 3 and -10.1% since the February 13 peak of this year.”
Tim Lawless, CoreLogic
Sydney housing values since January 2020
The daily index shows Melbourne stocks second only to Sydney and have fallen 6.4% since January 14. Brisbane is down -6.1% since its June 19, 2022 peak. Adelaide and Perth are both down less than -1% since their August peaks.
Hobart and Canberra are both down -4.7% and -4.4% from their month-end peaks.
Darwin remains the only capital where house values have not fallen, although they remain 10% below the record level of 2014.
“Despite the -10.1% decline so far, Sydney home values still have some way to go before they wipe out the capital gains accumulated during the recent growth cycle. Home values are expected to decline further by -11.4% to return to levels seen at the start of COVID,” Lawless said.
“The good news for Sydney homeowners is that the rate of decline continued to moderate through October, going from a decline of -2.2% in the four-week period ending September 3 to -1.3% over the most recent four-week period ending October 23.
What’s happening on the ground in the Sydney market?
Real Estate Institute of New South Wales (REINSW) CEO Tim McKibbin noted that the end of the year is approaching, with many people wanting to be in a new home by Christmas, sellers and sellers need to act now.
“And there are a lot of them,” he said.
“Auction numbers in Sydney are encouraging from week to week and the stable price environment is understood by buyers and sellers, supporting balanced trading and stable transaction activity.”
McKibbin noted that the rental market continues to receive a lot of attention and the lack of options for tenants continues to bite.
“Rental prices remain high due to the shortage of supply, compounding other cost of living issues for many people,” he said.
Mr. McKibbin also noted the federal budget, which will be delivered by the Treasurer Jim Chalmers tomorrow night, which he noted is expected to be “challenging” given the challenging macro conditions globally. He also noted that more housing reforms should be considered to meet increased demand.
“As previously announced, the forthcoming increase in the number of permanent migration visas, designed to address shortages in the economy, will also introduce further pressure on the supply of accommodation in New South Wales,” it said. he declares.
“The Federal Housing Minister has described the Australian Government’s housing reform as ‘ambitious’, but in New South Wales these ambitions will only be achieved through measures to increase supply.
“Whether through planning, fiscal or other reforms, the need to tackle supply in the state remains more pressing than ever.”