Sydney property prices sink back to levels last seen in 2016

Sydney property prices sink back to levels last seen in 2016

Sydney home values have continued to drop amid a climate of growing caution from lenders and property buyers.

Figures published today showed the median price of a Harbour City home, which includes units, townhouses and detached dwellings, fell 1 per cent over the past month.

The fall followed a 1.3 per cent drop in the median over January, which pushed the total fall for the past quarter to 4.1 per cent.

MORE: Famous pub hits market for $30m

Chris Hemsworth has become a click magnet

Nick Tobias lists in Bondi for $20m

A typical Sydney home now costs $789,339, well below the nearly $900,000 it was at the same time last year and level with what it was in 2016, according to CoreLogic.

Driving the recent value falls was weakening property demand in city regions heavily supplied with new housing.

The Ryde council area, where developers have released a slew of new apartment blocks, recorded the biggest fall in prices.

The typical price of all dwellings in the area dropped 14.8 per cent over the past year.

The Canterbury-Bankstown area, another construction hub, recorded a 13.4 per cent drop in median, while in Parramatta the annual drop was 11 per cent.

Falls in prices were smaller in the eastern suburbs and northern beaches, where fewer new housing projects have been released.

CoreLogic analyst Cameron Kusher said it was likely prices would continue to drop over the next few months.

Part of the reason was because fewer buyers could get the large mortgages needed to buy Sydney’s expensive homes in the current lending environment, he said.

Those buyers who did have adequate financing also had many homes to choose from, allowing them to negotiate prices.

“There is still a lot of stock on the market,” Mr Kusher said. “We expect the fall to continue, but the declines on a monthly basis should slow. As prices are falling — and they’re falling across the board — there will be some improvement in affordability. But it’s got a long way to go.”

Data from SQM Research estimated there were nearly 33,000 homes currently up for sale around Sydney — 22.3 per cent more than this time last year.

Listing numbers were also well up on those recorded when the market was booming during 2016. Back then, there were months when Sydney had less than 20,000 listings.

SQM managing director Louis Christopher said he it was likely more homeowners would be listing soon.

He added that recent listings trends suggested “vendors had a terrible spring selling season with most still trying to move their properties”.

Source link