Money Here's how the latest downturn in Sydney and Melbourne property prices compares to those seen in the past
Sydney home prices continue to slide
Australian home prices fell modestly in early April in weighted terms, reflecting continued weakness in Sydney. Sydney home prices continued to fall in early April, continuing the trend seen in recent months.
Home prices in Sydney and Melbourne are now starting to decline following years of strong growth.
, the median dwelling price in Sydney, Australia's most expensive housing market, has fallen 2% this year, adding to the modest losses recorded in late 2017.
Many are now pondering as to what will happen next?
Some thinkas tighter lending restrictions, affordability constraints, weak household income growth and increased supply act in tandem to keep prices under pressure.
Mortgage arrears stable but set to rise as house prices fall
There are six suburbs where the delinquency rate on mortgages is zero — that is, no-one is behind on their home loans. Well, that is not completely true.
Others, however, suggest the recent weakness is, pointing to strong employment and population growth as factors that will help to support prices in the near future.
While past performance is not indicative of future returns, if history is any guide, the recent weakness could extend for some time yet.
Australia needs to get smarter about catering to its growing population
Australia's population grew by 395,600 in the 12 months to September 2017. Sydney and Melbourne property prices rose by 72% and 53% respectively in the five years to mid-2017.According to data released by the Australian Bureau of Statistics (ABS), Australia’s population grew by 395,600 in the 12 months to September last year, representing an increase of 1.63%.
As seen in this chart from Cameron Kusher, Research Analyst at CoreLogic,, the latest downturn in Sydney is both shorter and more modest than most price corrections seen in the past.
Although each was driven by different factors, be it higher interest rates or global factors, it suggests the recent downturn is not all that unusual.
The same could also be said for Melbourne's latest price correction, far smaller and shorter than that seen in Sydney to this point, with the latest decline very modest in comparison to those seen in the past.
Right now, the declines in both Sydney and Melbourne appear to be moderating, especially in the former, compared to those reported late last year and in early 2018.
While that suggests that prices may soon start to level off, or even increase, in the months ahead, as both charts clearly demonstrate, that's no guarantee that the bottom of the price cycle has been hit.
Data shows a huge underlying problem for Australian house hunters: land prices have been soaring
The cost of vacant residential land has risen sharply over the past decade. Even as prices have risen, the median lot size sold has fallen across all capital cities.The cost of vacant residential land in Australia's capital cities continues to increase, even as lot sizes grow smaller.
You can follow Cameron on Twitter
Pictures: Melbourne vs. Sydney
Australian home prices are lower than a year ago .
Australian home prices are now lower than a year ago, in average weighted terms. According to CoreLogic, prices across Australia's five mainland state capitals fell by 0.1% over the past year in average weighted terms, a result largely reflecting outright declines in Sydney and a sharp slowdown in Melbourne.
Australian Housing Bubble Is Worse Than "Experts" Are Claiming - What You Need To Know!
Josh Sigurdson talks with author and economic analyst John Sneisen about the housing bubble situation in many cities across Australia, mainly Sydney as well as the overall issues with the economy....
THE FUTURE OF THE AUSTRALIAN PROPERTY MARKET, 2017 AND BEYOND…By Konrad Bobilak
SPECIAL FREE BONUS – For Instant FREE Access to The 10 Hour Real Estate Fast Track Weekend Online Video Home Study Valued At $497.00! - http://www.realestatedvd.com.au/absolutely-free-access-2016...