Property values in Sydney’s inner west, Parramatta and other isolated city pockets have been diminishing by roughly the price of a smashed avo breakfast every hour.
Newly published figures showed median house prices in parts of these areas dropped by more than $200,000 over the past year, a fall of $500-plus a day.
This equated to a drop of at least $20 every hour or roughly the price of avocado toast and coffee at some cafes, a meal once at the centre of the housing affordability debate.
MORE: Uncertainty grips home auctions
Why Aussie town has ‘best kept secret’
Waterfront suburb Russell Lea had the biggest drop in prices over the past year, with houses in the area losing $1300 in value every day, an analysis of CoreLogic data showed.
Prices in Glebe fell at a similar rate of $1246 per day, while price falls in Croydon and Concord West were about $1100 per day.
Values in the Parramatta CBD dropped by an average rate of about $993 per day, totalling about $362,000 for the year.
Price reductions in these areas were much larger than in other Sydney regions due to higher rates of home building, property experts said.
The surge in sales gave buyers more properties to choose from and allowed them to negotiate better prices with sellers.
CoreLogic analyst Cameron Kusher said weakening demand from property investors, who have often struggled to get financing from banks, also thinned buyer competition for sales.
“Serious sellers are finding they have to keep cutting their prices,” he said.
Demographer Bernard Salt said it was welcome news to see prices becoming more affordable.
The KPMG analyst launched a national debate about housing in 2016 when he warned that Millennials would never save home deposits if they kept ordering expensive avo breakfasts.
Smashed avo went on to symbolise how out-of-reach the Aussie dream of home ownership had become.
“Back then it was clear that prices were moving away from the younger generation and smashed avo caught the Zeitgeist of the time,” Mr Salt said.
“Now the situation seems to be in reverse and (buying) is getting easier.”
Plummeting prices have reopened much of Sydney to new groups of buyers, with mortgage data showing first home buyers have clawed their way back into contention for sales.
First home buyers accounted for about 18.3 per cent of all housing loans issued in November, a six-year high, according to the Australian Bureau of Statistics.
First-time buyers had been behind just 12 per cent of purchases in 2014.
Penrith has been a particularly popular market for first home buyers due to lower prices. The median house price is $690,000, nearly $22,000 lower than it was in 2017.
Thomas Latty, 21, recently bought his first home in local development East Side Quarter and said it was “definitely a buyer’s market”.
MORE: Agents make desperate offers to lure tenants
Opal Tower part of legacy of NSW building disasters
“It’s an awesome time to be a first home buyer,” he said. “There’s less competition and you could see prices going down.”
Mr Latty had been saving his deposit since the age of 16 and said he never felt it was necessary to be particularly frugal.
“I don’t think (saving) is about cutting out smashed avo breakfasts, it’s more about keeping track of what you’re paying. If you write down all your expenses you’ll realise how much you spend on everything.”