Sydney’s vendors gained $12,000 last month

Sydney house prices rose by 0.9 per cent in November, the weakest growth since January, as a surge in listings and rising interest rates start to slow the boom in house prices.

Despite the slower growth, Sydney property owners still added $12,000 to the median house price last month while Melbourne gained $5,835.

And for the year so far, property prices have climbed by a stunning 25.8 per cent in Sydney, 16.3 per cent in Melbourne and by 22.2 per cent nationwide.

CoreLogic research director Tim Lawless said higher fixed rate mortgages, worsening affordability and a flood of new listings have all combined to recent curb price growth.

The CoreLogic home index shows Melbourne home values climbed by just 0.6 per cent over the month and nationwide by 1.3 per cent.

“Fresh listings are being added to the market faster than they can be absorbed, pushing total active listings higher,” he said.

“More listings imply more choice and less urgency for buyers, so vendors may need to adjust their pricing expectations if homes take longer to sell.

“Fixed term mortgage rates are rising which could act as a disincentive for some buyers, while housing affordability is becoming more challenging from month to month.”

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