Yahoo Finance Sydney home prices fall $116,000 in 7 months
Sydney home prices have fallen more than 10 per cent since peaking in February this year thanks to rising interest rates.
Home prices in the expensive capital are down 10.1 per cent, equivalent to around $116,500, according to CoreLogic’s daily home value index.
The double-digit decline follows six successive cash rate hikes and record-low affordability after prices surged 27.9 per cent, or roughly $252,900, in the city’s dwelling values from the COVID trough to peak.
Also read: Sydney apartment with toilet in kitchen for rent: $520 a week
Also read: Sydney first homebuyer pays $1.2 million for derelict house: 'A mess'
Also read: Top 25 Sydney suburbs where prices are still booming
CoreLogic research director Tim Lawless said it was “unsurprising” Sydney was leading the capitals in the current downturn.
Lawless said, given Sydney was Australia’s most expensive capital city, it was also arguably the most susceptible to rising interest rates.
“Although Sydney’s housing values were already in decline when the rate-hiking cycle began, the pace of decline accelerated sharply following the first interest rate increase in May,” he said.
“Sydney values are now down 9.5 per cent since May 3, and down 10.1 per cent since peaking on February 13 this year.”
The daily index also showed Melbourne’s values were second to Sydney, falling 6.4 per cent since January 14, 2022, while Brisbane was down 6.1 per cent since its June 19, 2022 peak.
Adelaide and Perth have both declined less than 1 per cent since their August peaks.
The research found Hobart and Canberra were both down 4.7 per cent and 4.4 per cent respectively since their month-end peaks.
Darwin remained the only capital city where housing values hadn’t started to trend lower, although values remained 10.1 per cent below its record high in 2014.
“Despite the 10.1 per cent decline so far, Sydney home values still have a way to go before wiping out the capital gains accrued over the recent growth cycle,” Lawless said.
“Home values would need to fall a further 11.4 per cent to get back to the levels seen at the onset of COVID.”
Follow Yahoo Finance on Facebook, LinkedIn, Instagram and Twitter, and subscribe to the free Fully Briefed daily newsletter.
