Sydney Home Values Fall 0.9% in May as Budget and Rate Hikes Squeeze Buyers
Updated
Updated · Oz Arab Media · Jun 12
Sydney Home Values Fall 0.9% in May as Budget and Rate Hikes Squeeze Buyers
3 articles · Updated · Oz Arab Media · Jun 12
Summary
Sydney home values posted their biggest monthly drop in years in May, falling 0.9% and pulling the city deeper into a broader national housing slowdown.
Borrowing capacity has shrunk about 10% to 15% since the federal budget, while higher rates and tighter bank lending have made buyers more selective and slowed decision-making.
Auction conditions weakened alongside prices: Sydney’s preliminary clearance rate fell to 51.8% in the final week of May and hit 49.2% during budget week, the lowest since April 2020.
Selling times have stretched to about 40 days from 28, open-home attendance is down roughly 5%, and some suburbs recorded monthly price falls of 1.4% to 2.6%.
Cotality’s Tim Lawless said the market may be at the start of a broader correction, with national home values potentially falling 8% to 10% if current conditions persist.