Sydney Housing Prices Are Set To Drop 10% This Year
2017 saw the topic of Sydney’s housing prices hit the headlines over and over again. Along with that came some “financial advice” that advised millennials to cut back on takeaway coffee and smashed avo brunches so that they could afford to buy a home.
Well, good news everybody! There’s now a slight glimmer of short-term hope for those wanting to crack the market as experts are predicting that Sydney properties are set to fall up to 10 percent over the next 12 to 18 months.
Back in December 2017, prices already fell in Sydney by about 0.9%, leading the charge in a gradual drop in house prices across the country. Before you whip out your wallet or apply for a home loan, consider this… the median house price in Sydney is still $1,058,306 while a median apartment price is $774,124.
Head of property consultant at CoreLogic, Tim Lawless, is reminding us, “Despite the reversal in growth rates since August 2017, Sydney dwelling value remain 70.8 percent higher than their cyclical low points in February 2012.”
Some people are attributing the adjustment in prices to new rules introduced by the Australian Prudential Regulation Authority. The rules are designed to control the heightened risk in the housing market by being firmer on interest-only loans that are often favoured by some investors.
BIS Oxford Economics senior manager residential Angie Zigomanis told Fairfax, “Investors are a big contributor to price growth in Sydney and this will stop them from paying the premiums they have in the past.”
This just goes to show that house prices can’t keep growing at the same rate forever.