Sydney Home Values Drop 0.9% in May as Buyer Budgets Shrink Up to 15%
Updated
Updated · ABC News · Jun 7
Sydney Home Values Drop 0.9% in May as Buyer Budgets Shrink Up to 15%
3 articles · Updated · ABC News · Jun 7
Summary
Sydney home values fell 0.9% in May, the steepest drag on Australia's housing slowdown, with the median home value at A$1.28 million and some harder-hit areas down 1.4% to 2.6%.
Buyer caution has intensified after interest-rate hikes and federal budget changes to negative gearing and capital gains tax, with agents saying borrowing budgets have dropped 10% to 15%.
Market activity has weakened alongside prices: average days on market stretched to about 40 from 28, open-home attendance fell roughly 5%, and Sydney's preliminary auction clearance rate slid to 51.8% in late May.
Agents say well-priced homes are still selling and a crash is unlikely, but they expect a flatter, more price-sensitive market that could pressure transaction volumes and real-estate offices.
Cotality's Tim Lawless said the downturn may be in its early stages, with national home values potentially falling 8% to 10%, though past combined capital-city declines have not exceeded 8.2% over four decades.