Money Sydney home prices continue to slide

15:05  09 april  2018
15:05  09 april  2018 Source:   Business Insider Australia

AMP Capital expects Sydney and Melbourne house prices to fall by another 5%

  AMP Capital expects Sydney and Melbourne house prices to fall by another 5% Australian capital city home prices have now fallen for five consecutive months. The national slowdown largely reflects weakness in Sydney and Melbourne.After a strong rebound in late 2016 and throughout much of 2017, coinciding with a reduction in official interest rates from the Reserve Bank of Australia (RBA), Australian house price growth has slowed rapidly in recent months.

SYDNEY home values continued to slide in October, with the nation’s biggest housing market recording its first quarterly fall since May 2016. Nationally, median house prices were unchanged over October, both in the combined capital cities and combined regional areas.

Sydney home prices dropped 0.3 per cent in March, leaving values down 2.1 per cent on the year, according to property consultant CoreLogic. Values had been surging at more than 20 per cent a year at the peak of the boom.

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Sydney home prices continued to fall in early April, continuing the trend seen in recent months.

According to CoreLogic, prices in Australia's largest and most expensive housing market fell by 0.1% in the first full week of April which, along with flat performances from Melbourne and Brisbane, saw prices nationwide fall by 0.1% in average weighted terms.

However, as seen in the table below from CoreLogic, the softness in Sydney and Melbourne prices masked stronger performances from Australia's smaller mainland state capitals over the same period with prices inching up by 0.1% in both Adelaide and Perth.

Tasmania's booming real estate market could be about to slide, industry warns

  Tasmania's booming real estate market could be about to slide, industry warns Tasmania's real estate industry is warning the end is in sight for the state's booming housing market even though prices are stronger than ever. Load Error

Property consultant CoreLogic said on Tuesday its index of home prices showed prices in Sydney dropped 0.3 per cent in March, leaving values down 2.1 per cent on the year. "The stronger combined regional markets performance continues a trend that began to emerge in October last year

Home cost estimator. Income and expenditure worksheet. Can I afford an investment property? Where can I afford to buy? Fixed vs variable home loans. If the recent figures by CoreLogic are anything to go by, analysts might be right in predicting that the house prices in Sydney will continue to decline.

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Over the past four weeks, prices in Perth have grown by 0.4%, a performance in stark contrast to the trend of prior years where prices in the Western Australian capital underperformed the national average.

Of the remaining state capitals, prices fell over the same period, ranging from a drop of 0.3% in Melbourne to falls of 0.1% apiece in Brisbane and Adelaide.

a house that has a sign on the side of a building © Provided by Business Insider Inc With Sydney down 0.2%, it saw prices nationwide fall by the same margin in average weighted terms.

So far this year, and despite a recent divergence in prices in individual capitals, prices have fallen in each of Australia's mainland state capitals, ranging from 1.9% in Sydney to 0.1% in Brisbane and Perth.

Sydney's apartment building boom is hitting new highs even as prices start to fall

  Sydney's apartment building boom is hitting new highs even as prices start to fall Unit prices in Sydney are falling. Total units under construction in NSW hit the highest level on record late last year. There are 16,786 units approved but yet to begin construction across the state, the second highest number on record. Home prices are falling in Sydney, including for units.According to data from CoreLogic, apartment prices in Australia's largest and most expensive housing market fell by 0.9% in the first three months of the year, seeing the increase on a year earlier slow to 1.9%.If the chart below is anything to go by, there could well be further declines to come.

Home prices across Australia's major cities slipped for a sixth straight month in March as tighter lending rules clamped down on investment demand in Sydney . "The stronger combined regional markets performance continues a trend that began to emerge in October last year," noted CoreLogic

Sydney has had another week of cooling house prices as auction clearance rates continue to slide across the markets. There were five buyers bids and the home sold over reserve. "The market is very consistent and prices just keep going up," selling agent Stockdale & Leggo Caulfield's Ally Aziz said.

Reflective of the recent slowdown, average price growth over the past year slowed to just 0.4%, a figure that is likely to turn negative in the period ahead in the absence of an unexpected rebound in the Sydney and Melbourne markets.

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Prices in Sydney are now down 2.6% from a year ago, a larger decrease than the 2.3% drop recorded in Perth over the same period.

Elsewhere, annual price growth in Melbourne has slowed to 4.6% -- well below the double-digit gains seen this time a year ago -- while those in Brisbane and Adelaide have increased by 1.1% and 1.7% respectively.

Contributing to the recent slowdown in Sydney and Melbourne, CoreLogic reports the number of properties up for sale in these markets has risen solidly over the past year, lifting by 28.6% and 6.5% respectively to 26,536 and 30,249 dwellings.

That's contributed to a 6.8% increase in listings nationally to 110,412 over the past year, masking falling stock availability in all other capitals aside from Brisbane where they have risen by 3.4%.

Buyers are losing interest in Sydney property

  Buyers are losing interest in Sydney property Sydney home prices are now underperforming the national average, reversing the trend seen over much of the past decade.After years of strong price growth in Sydney, far outpacing price movements in other capital cities, the tables have turned over the past few months.

The number of homes up for auction has continued to slide with 1,751 properties going under the hammer across the The battle for top ranking in annual median home price movements continues between Melbourne and Sydney , with their prices up 15.5 per cent and 13.1 per cent, respectively.

RECENT falls in Sydney prices could continue for months to come as the market finally slams into reverse gear, housing experts claim. Data published yesterday showed home prices slid down for a third straight month over November, with the market having peaked in July.

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The decline in stock availability in Australia's smaller capitals, along with other factors, points to prices in these areas outperforming the national average in the period ahead, says Shane Oliver, head of Investment Strategy and chief economist at AMP Capital.

"A further tightening in lending standards as banks get tougher on borrowers’ income and living expense levels along with rising supply and more realistic capital growth expectations by home buyers will see Sydney and Melbourne property prices fall another 5% or so this year with further falls likely next year," he says.

"In contrast, home prices in Perth and Darwin are either at or close to the bottom. Price growth is likely to be moderate in Adelaide and Canberra, but it may pick up a bit in Brisbane thanks to stronger population growth and the boom in Hobart has a way to go yet."

Here's how the latest downturn in Sydney and Melbourne property prices compares to those seen in the past .
Sydney and Melbourne home prices have fallen 2% and 0.6% respectively so far in 2018. Home prices in Sydney and Melbourne are now starting to decline following years of strong growth.

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