2 minute Read
2 minute Read
As reported by the Australian Financial Review, house prices in a few of the inner suburbs of Sydney, like Surry Hills, have dropped by more than $190,000 in the past three months to February.
This is all according to CoreLogic figures, so this isn’t something the Review has made up. We’ve been waiting a while for prices to drop, so let’s explore by how much.
Beaconsfield saw the largest drop at 9.2% in median house value to $1.77 million. Prices on average are now $162,662 lower than they were three months ago. Newtown house prices fell by 6.6% ($120,207 drop to $1.821 million), Surry Hills fell 6.1% ($134,054 drop to $2.197 million), and Birchgrove fell 6% ($190,581 drop to $3.176 million).
CoreLogic’s Head of Research, Eliza Owen, said that the pricey areas are currently more volatile compared to the lower end, but it’s the ridiculous growth we had that has now lowered demand. As she states, “I think affordability constraints, tighter lending conditions and, higher fixed rates have likely been enough to cool premium markets, and the sharpness of the fall relates to the volatility in the high end of the market, and the extremely strong run up in price growth. I think it’s a reflection of how strong the upswing in the more expensive central markets has been.”
Unit prices fell too with Barangaroo getting hit the hardest with an 8.5% drop to $2.292 million. The Rocks also dropped 5% to $1.55 million.
The same trend has been observed in Melbourne too with the inner suburbs of Prahran, Cremorne, South Yarra, and Windsor all dropping by more than 5%.
Does this mean that house prices in general are going to drop? Maybe not just yet as it should be noted that the higher end of the market is volatile and often doesn’t represent the general trend in the market. However, that does not mean a drop in house prices isn’t coming, it just probably won’t be as impressive as the drop observed in the premium market.
Prime Minister Scott Morrison has just recently declared that the government’s Home Guarantee Scheme will have higher maximum property prices and more available places per year. From July 1, this price upgrade will qualify houses in two out of five (40%) suburbs nationwide for the scheme. This is up from 24.1% according to analysis by […]
Joseph Daoud
3 minute Read
Rental prices have increased dramatically right across the nation due to record low vacancy rates. Capital city rents have risen by 11.8% over the past 12 months and rose by 2.2% in just the last month, according to SQM Research. Louis Christopher, SQM Research managing director said that “The magnitude of rental increases across the […]
Joseph Daoud
2 minute Read
https://itssimple.com.au/wp-content/uploads/2022/04/Ep126_-_Joseph_Daoud_mixdowna3qma.mp3Podcast: Play in new window | Download Just recently, our founder and CEO, Joseph Daoud, appeared on the Real Estate Right podcast to discuss the importance of credit scores. While you may be familiar with the definition of a credit score, you may not be so familiar with the role it plays in your mortgage. [...]
Joseph Daoud
2 minute Read