Sydney’s property market has been on the rise since early 2016, with prices rising to an all-time high across most of the state. However, last month (September 2017), prices dropped for the first time in more than a year, which falls in line with annual growth prices across the country finally starting to slow down.
For the second month in a row, house prices across Australia’s major cities only rose marginally, with Sydney actually experiencing a rare dip.
The index for home prices for the combined capital cities rose just 0.3 per cent in September, compared to August when they only increased by 0.1 per cent. September also saw the annual growth in prices slow to 8.5 per cent, which is down from 9.7 per cent in August and 10.5 per cent in July.
“This slowing in the combined capitals growth trend is heavily influenced by conditions across the Sydney market where capital gains have stalled,” said CoreLogic head of research Tim Lawless.
In Sydney, property prices eased by 0.1 per cent in September, dragging the city’s annual pace back to 10.5 per cent, which is down from 13 per cent in August.
Despite a minor reprieve in Sydney, and a slower increase rate across the country as a whole, house prices in Melbourne continue to rise. Prices rose by 0.9 per cent in September, bringing the city to a 12.1 per cent increase for the year.
It’s believed the stronger housing market in Melbourne is attributed to strong auction clearance rates, which have consistently remained above 70 per cent. This is in addition to the amount of properties on the market remaining low, with most listed properties selling within an average of 30 days.
At an individual level, prices across the rest of the country have varied. For instance, Hobart rose 14 per cent on the year, while Perth prices dropped by 2.9 per cent.
Government initiatives like slashed stamp duty and increased first homebuyer grants in Victoria and New South Wales, when paired with a slowing market in some cities, make acquiring a home loan a very real possibility for many.
If you’re ready to break into the property market and would like to know more about your loan potential, check out our handy loan calculator, or contact the team at Complete Financial Services today!