Sydney house values fell 0.1 per cent in February, the first monthly decline since September 2020, in what could be the start of sustained price drops across the city.
Melbourne’s values stagnated during the month, following similar results in December and January, as higher mortgage rates, rising listings and poor affordability took their toll.
Tim Lawless, CoreLogic’s director of research, said the latest CoreLogic February home value index showed capital city and broad region now recorded a slowing trend in price growth, albeit with significant diversity.
“Sydney’s price drop is a pretty stark reminder that the boom in Sydney is over, and potentially we are looking at a marketplace now that is levelling out, potentially even moving into its downward phase earlier than what we expected,” he said.
“This could be the start of price falls, obviously we’d want to see what the trend is doing –one month of falls could be the start of a new trend, but we really need to see how the data pans out over the coming months.
“I think without a doubt we have seen the markets showing consistent signs of levelling out, not just in value growth, but also we can see that the number of listings are normalising, so buyers are getting more choice and selling time is starting to lift.”
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