Sydney house prices have officially broken past its previous 2017 peak, new data has revealed.
In the property downturn three years ago, dwelling values in Sydney dropped by 15.3 per cent between July 2017 and May 2019, according to property data firm CoreLogic.
Since then, Sydney house prices have been on an upward trajectory. It was interrupted by COVID-19, which caused property values to dip by 3 per cent during the worst of the pandemic.
The median price for any dwelling in Harbour City is now $895,933, CoreLogic’s latest figures state, while the median price for houses specifically has hit $1,061,229. Both figures are new record highs.
“Since housing values found a floor in October last year, Sydney home values have risen 5.7 per cent to reach a new record high today,” said CoreLogic executive research director Tim Lawless.
But this isn’t good news for everyone, he added.
“The fresh record high is great news for Sydney home owners, but highlights the challenges for non-home owners looking to participate in the housing market as values rise faster than incomes.”
How high will it get?
Earlier this month, Lawless commented that though Sydney and Melbourne’s property markets were performing strongly, it was “unclear” whether this growth would be sustainable.
“With household incomes expected to remain subdued and stimulus winding down, it is likely affordability will once again become a challenge in these cities.”
Activity in the property market has heated up amid record-low interest rates of 0.1 per cent.
She cautioned property buyers to keep a cool head before buying a property, saying that just because borrowers can take out bigger loans, doesn’t mean they should.
“While low rates are driving current prices north, predictions of up to 20 per cent property price rises over the next couple of years are pushing people to panic buy.”
“If you are looking to buy a home, don’t just work out the monthly mortgage repayments, look at how much debt you’re willing to take on,” she said.
Reserve Bank of Australia governor Philip Lowe reiterated again this week that the central bank would not be considering raising rates until around 2024.
Meanwhile, Westpac has predicted a 20 per cent jump between now and 2023.