Market News
Sydney House Prices Drop for the First Time in Almost Two Years - BLOOMBERG
(Bloomberg) -- Sydney home prices slipped for the first time in almost two years in October as mounting affordability concerns discouraged buyers, while the broader Australian market advanced at a slower pace.
Sydney fell 0.1% from the prior month — the first decline since January 2023 — though its median price still held near a record A$1.19 million ($823,780), property consultancy CoreLogic Inc. said Friday. Perth led gains with a 1.4% increase, while Melbourne posted a further decline as dwelling values in major cities rose just 0.2% in October.
The data showed weakness in the most expensive areas of the market while values in the lower quartile posted strong increases.
“A combination of less borrowing capacity and broader affordability challenges, as well as a higher-than-average share of investors and first home buyers in the market is the most likely explanation,” said Tim Lawless, research director at CoreLogic.
“Slower growth in home values has been accompanied by a rise in advertised stock levels,” Lawless said, adding the number of home sales “looks to be fading.”
Total listings are now 13.2% above the previous five-year average in Sydney and 13% higher in Melbourne, the data showed. At the same time, major city auction clearance rates held below 60% through most of October, while private treaty metrics saw a slight rise in median days on the market.
Higher interest rates, a shortage of homes and booming population growth have triggered a housing crisis in large parts of Australia. The problem is particularly acute in Sydney where buyers are being priced out of the market given an average home costs 13-times income. That has fueled growth in the lower quartile of the market, with apartments outperforming houses, CoreLogic said.
