Recently home prices in Australia have been in a downward spiral. In March, Sydney home prices dipped by 0.3%, which set home prices at 2.1% lower than they were at the start of the year. But, this might be a good thing. Why is that?
According to researchers, there are signs that the market is starting to solidify, which bodes well for real estate. Annual growth is still positive at 5.3%. Home prices outside of major cities have also been experiencing growth. As it sits right now, Australia’s bank watchdog is happy that the tightened restrictions on lending is having a positive effect on the market.
- Home prices in Sydney, and other major cities in Australia, have been dropping for the sixth month in a row.
- Even though home prices have dropped, annual growth rate stayed at 5.3%, showing some stability in the housing market.
- Overall, home prices across the country were up by 1.2%.
Home prices across Australia’s major cities slipped for a sixth straight month in March, with Sydney leading the falls, but the worst may be over for the city’s property owners. Sydney home prices dropped 0.3 per cent in March, leaving values down 2.1 per cent on the year, according to property consultant CoreLogic. Values had been surging at more than 20 per cent a year at the peak of the boom. Sydney house prices have declined by 2.1 per cent over the past 12 months.
“The broad-based falls highlight that the softening trend in the Australian housing market is largely due to weaker conditions in Sydney,” CoreLogic head of research Tim Lawless said.
But Mr Lawless said Sydney’s property market was showing signs of solidifying, with the 0.3 per cent monthly fall its slowest rate of decline since late last year. “If the trend towards an improving rate of decline persists, the Sydney housing market may have already moved through its peak rate of decline,” he added
Melbourne prices dipped 0.2 per cent in the month, although annual growth stayed positive at 5.3 per cent.
Across Australia, the combined capital cities slipped 0.2 per cent in March, after they fell 0.3 per cent in February. Annual growth across Australia’s capital cities slowed to just 0.8 per cent, from 2 per cent in February and 10.5 per cent in the middle of 2017.
Home prices outside the major cities edged up 0.4 per cent in March to be 2.6 per cent higher on the year. Combined, prices across the nation were flat for the month and up 1.2 per cent for the year.
View the original article at Sydney Morning Herald