House prices have fallen in more than half of Sydney’s suburbs over the past three months as prospective buyers hold off on purchases in hopes of lower interest rates next year.
Exclusive data from PropTrack reveals that this drop shaved more than $100,000 off the average home price in many areas.
This fall coincided with a significant increase in real estate listings heading into spring, doubling the number of housing options available in many areas.
Last month was also the month with the most new listings in nine years.
Experts have revealed that unusually favorable conditions for home seekers are providing a rare “window of opportunity” for low prices ahead of an expected market boom following the interest rate cut.
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Josh Dufficy and Melanie Cook recently decided on their first home after facing far less competition than expected. Photo: Thomas Risson
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Prop Track economist Anne Flaherty said this could be the calm before the storm.
“More homes are for sale, creating more opportunities for buyers and slowing price growth,” he said.
“If interest rates are cut, the market is likely to move higher as buyers have bigger budgets.
“A reduction also gives confidence. We know that one of the biggest concerns for buyers is interest rate increases, and a reduction would provide more certainty.”
Prop Track showed that many of the biggest price declines were recorded in inner suburbs and coastal areas, particularly across the Central Coast.
Median house prices in the Central Coast suburbs of Toukley, Erina and Gorokan have fallen by $50,000 to $89,000 over the quarter, while median house prices have fallen by more than $250,000 in Manly, Bondi, Fairlight and Clovelly. did.
PropTrack economist Anne Flaherty said the decline was unlikely to continue after the rate cut.
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Waverley, Bondi Junction, Darlington, Millers Point, Drummoyne and Lewisham have also seen significant declines in unit prices.
Other notable declines have also been reported in former development hotspots, primarily in the Greater Parramatta region and north-west suburbs, where landlords are now scrambling to unload apartments.
That includes North Rocks, where unit prices are about $93,000 lower on average than this time last year, and Norwest, where prices are $126,000 lower than a year ago.
“Investor selling has been a major driver of price declines in many areas,” Flaherty said, noting that investors often sell high-density units purchased off-plan.
“Sales to investors have meant that the stock of shares, particularly units, has increased significantly, and competition among buyers has been significantly reduced.”
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SQM research director Lewis Christopher said Sydney was currently in a “buyer’s market” and would remain so until the Reserve Bank cut interest rates.
Christopher said rising interest rates are a factor in the market slowdown and top listing environment as more struggling homeowners begin unloading their homes, but delinquencies and distressed sales remain low. He pointed out that it was on par.
Mortgage Choice broker Leanne Johnston said home seekers were finding it easier to buy a home in Sydney.
“People are saying there are more properties available in the same price range,” she said.
“Buyers used to say there was nothing there and there were twice as many people bidding against them.
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Regent’s Park homes had some of the largest waterfalls.
“Customers (now) seem to be happy with the prices they’re being offered. There’s not a lot of evidence that there was a big bidding war. They don’t have to compromise as much as they used to.”
Josh Dufficy and Melanie Cook recently purchased their first home and were surprised to find a property they loved after just three weeks of searching.
“We’re happy with the price we paid,” Dufficy said, adding it came in below the original budget.
“We were prepared for a lot of competition and we had a lot of people everywhere we went, but I don’t think we were significantly short on space.
“We had a few locations we liked. We made offers to four companies. They were all considered and not far from where we needed to be, so it wasn’t crazy.”
– With additional reporting by Taylor Troeth
