It seems spring has brought an unexpected cool change to Sydney’s property market.
House prices in the NSW capital fell 0.1%. The first downward trend since late 2015.
It seems the market has certainly lost a lot of its steam. The AFR reports that,
‘Sydney house prices rose 0.8 per cent at the same time last year.
‘The quarterly rise of 0.2 per cent for Sydney to September this year was also much smaller than the quarterly rise of 3.5 per cent last year.
‘Overall, capital cities rose 0.3 per cent against 1 per cent last year.’
Melbourne’s House Prices
Melbourne’s house prices continued their trend upward, rising 0.9% for September. But, like Sydney, that was down compared to last year’s figures of 2.3%.
Corelogic’s head of research Tim Lawless has pinned the result on affordability, commenting,
‘The stronger housing market conditions in Melbourne are supported by auction clearance rates which have consistently remained above 70 per cent. Additionally, advertised stock levels remain remarkably low and private treaty sales continue to sell rapidly, averaging 30 days on market,’
It seems first home buyers are taking advantage of the cooler market as well. Commitments during the June–July period were up 28% in NSW and 11% in Victoria. Clearly the demand is still there.
According to Mr Lawless, a larger drop off in prices won’t be coming anytime soon.
But if you follow Philip Anderson’s insights, you’re probably already well aware of this. After all, Phil has made a career out of following the property cycle. For more info check out Phil’s full report, for free, right here.
Junior Analyst, Markets & Money