Sydney house prices down 9.5 percent from peak

House values tumbled by 0.8 per cent to be down 3.4 per cent through the year so far

Camera Icon House values tumbled by 0.8 per cent to be down 3.4 per cent through the year

November represented the weakest monthly result for Sydney property since the global financial crisis with a 1.4 percent decline, ahead of 1 percent drop in Melbourne, the Australian Financial Review (AFR) reported on Monday.

Melbourne's property price falls have been less precipitous so far, with values down 1 per cent last month, and 5.8 per cent peak to trough.

The drop takes the total decline in Sydney since the July 2017 peak to 9.5%, on the cusp of overtaking the 9.6% top-to-bottom decline recorded during the last recession 27 years ago.

Sydney's drop was double the national average, and Melbourne values fell 1.0 per cent.

This decline is even steeper than the 1989-91 fall, showing how quickly sentiment has flipped.

"That's really reflective of the fact that there has been a lot of new supply coming onto rental markets", he said.

With so many homes now up for sale in these cities, the recent pick-up in price declines suggests some vendors are choosing to lower their price expectations in order to secure a sale before a seasonal slowdown in market activity over summer months.

"Strong growth in these areas is starting to erode the affordability advantages of these markets, although lifestyle factors are also a strong driver of demand in many of these locations", Mr Lawless said.

While the decline may be unnerving to some investors, the weakness appears contained to Sydney and Melbourne, which account for 55 per cent of the national market.

Mr Lawless said these trends were likely to be repeated in the short-to-medium term.

"Despite the recent out-of-cycle 15 basis point rise in mortgage rates, the cost of debt remains at the lowest level since the 1960s", he said.

"I think any turnaround in the housing market is very much reliant on credit becoming a bit more available and, potentially, when we do start to see credit loosening up a little bit, that might be a sign that potentially monetary policy [interest rates] might be adjusted upwards as well".

However, unit values are now falling across more centres.

For those looking for more granular details on price movements over the past month, quarter and year, this table from CoreLogic has plenty of information for those across the country. Read it here or follow BusinessInsider Australia on Facebook.

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