AIDAN DEVINE The Daily Telegraph November 2, 201711:32am
SYDNEY’S housing boom is well and truly over — property prices fell for the second successive month and house hunters are now in a completely different position from a year ago.
HOUSE hunters will have an easier shot at getting into the Sydney housing market after yet another monthly drop in property prices.
The CoreLogic Home Value Index released Wednesday showed the city’s median home price dropped 0.5 per cent over October to hit $905,917.
It was the third successive month of weak activity following the 0.1 per cent price reduction over September and zero per cent growth recorded over August.
The result was a 0.6 per cent price fall for the quarter.
Sydney also joined Perth and Darwin as the only capitals where prices decreased over the three months — prices increased in every other market.
Hobart’s median had the biggest increase at 3.3 per cent, followed by Melbourne’s 1.9 per cent growth.
Sydney’s recent run of price falls followed a largely flat market over the autumn and winter months, with the only major price growth of 2017 occurring over January and February.
To date, Sydney’s median has increased just 4.4 per cent this calendar year, well below the roughly 15 per cent jump recorded in 2016 and 12 per cent growth over 2015.
CoreLogic head of research Tim Lawless said the most significant factor currently driving Sydney prices down was softer demand for housing.
Fewer investors were purchasing homes after failing to obtain financing while many owner occupier buyers were turning to cheaper housing markets outside of Sydney, Mr Lawless said.
Weaker demand from investors had arguably the bigger impact on the market because they accounted for more than half the Sydney properties purchased in 2016, he added.
“Investors are facing premiums on their mortgage rates which are likely to act as a disincentive (to buying),” Mr Lawless said.
McGrath Estate Agents founder John McGrath said it was becoming clear Sydney’s housing market had peaked but any further drops in prices would be minor.
“Sydney’s population is growing fast and there is still a large shortage of homes so it is highly unlikely we will have a major correction,” Mr McGrath said.
AIDAN DEVINE The Daily Telegraph November 2, 201711:32am
