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Home › Property Market Update › Sydney, NSW
Sydney’s property market experienced a slight decline of 0.1% in home values for October 2024, marking the first drop since early 2023. This indicates the continuation of a market cooldown after a period of moderate recovery earlier in the year.
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While the overall annual growth rate for Sydney remains positive at 3.7%, the recent downturn highlights challenges, especially in the upper quartile where house values fell 0.6% in October and 1.1% over the past three months. The median dwelling value in Sydney currently stands at $1,193,240.
CoreLogic Home Value Index
CoreLogic Home Value Index, Released on November 1, 2024
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The cooling trend is more pronounced in higher-value properties, while lower quartile house and unit values saw a 0.5% increase. This suggests that the more affordable segments of the market are maintaining interest and stability. Increased advertised supply has also been observed, with Sydney’s total listings 13.2% above the five-year average, contributing to softer market conditions and more options for buyers.
Summary of housing values since the onset of COVID in March 2020 and relative to peak levels (onset of COVID calculated from March 2020).
Moving forward, Sydney’s market is expected to remain balanced but may face further pressure due to affordability constraints and economic factors like rising interest rates. While lower inflation rates may help stabilize the market, challenges such as high debt servicing ratios and increased listings could lead to continued moderation.
The Reserve Bank of Australia’s ongoing adjustments to interest rates will likely play a crucial role in shaping market dynamics, as higher borrowing costs limit purchasing power for many buyers.
Here are some of the most recent forecasts by the big-4 banks in Australia:
Oxford Economics recently released property forecasts predicting where house prices will be in three years.
Homeowners in Sydney should be prepared for a market that is stabilizing with some risks of further declines, particularly in higher-value segments. The market shows resilience in more affordable areas, providing potential opportunities for targeted selling or investment.
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Australian Property Market – Prices, Trends, Forecast [November 2024]
Melbourne Property Market – Prices, Trends, Forecast [November 2024]
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