Sydney’s median house price is on track to dip below $1 million for the first time in four years, according to analysis by one of Australia’s leading real estate websites.
- The median house price in Sydney has not been less than $1 million since March 2015
- Property prices in the Harbour City peaked in June 2017
- Then, the average price for houses was almost $1.2 million
The latest Domain house price report shows Sydney’s median house price is now $1,027,962, which is down 3 per cent over the past three months.
Domain senior research analyst Nicola Powell said if the pace of decline continues, prices are likely to drop below $1 million in the next three months.
The last time that was the case was in March 2015 when the median house price was $929,659.
“Ultimately obtaining a home loan is more challenging and what that has translated into is there are fewer buyers in the market because buyers are having to meet more stringent lending conditions,” said Ms Powell.
“Some buyers are unable to get finance and if they can get finance their borrowing capacity has been reduced.”
The most recent data from another key data analysis source, CoreLogic, confirmed the Harbour City’s housing slump — having the average house price in Sydney as $880,000.
She said there were also fewer investors and foreign buyers in the market and more stock.
Unit prices fell 2 per cent over the past three months to a median of $696,935.
Ms Powell said it was likely price falls would continue for the rest of the year.
She said prices could be lifted a little bit by an interest rate cut but that would not spike anywhere near as much activity as was seen during the boom.
“There is wariness amongst buyers,” she said.
“I think there is renewed interest but buyers out there they’re smart, they’re knowledgeable in the fact that the market has been softening for some time and I think they don’t want to overpay.”
Ms Powell says Sydney’s property prices peaked in June 2017 with houses at $1,199,679 and units at $773,348.