Sydney home prices are still sliding

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  • Home prices across Australia’s state capitals were flat last week in average weighted terms.
  • Sydney prices continued to weaken, dropping 0.1%. They’ve fallen 2% this year, leaving the drop over the past 12 months at 2.9%.
  • Total property listings in Sydney have risen 22.1% over the past 12 months.

Home prices across Australia’s state capitals were flat last week.

According to CoreLogic, a small 0.1% increase in Brisbane, along with flat results in Melbourne and Adelaide, were able to offset declines of 0.1% in both Sydney and Perth.

Despite the flat weekly result, Melbourne prices have fallen 0.3% over the past month, the most of any state capital. They also fell in Sydney and Brisbane over the same period, declining 0.2% and 0.1% respectively.

In contrast, prices in Adelaide and Perth strengthened over the month, rising by 0.1% and 0.3% respectively.

Combined, prices nationally fell 0.2% over the past month in average weighted terms.

Source: CoreLogic

Largely reflecting ongoing price weakness in Sydney, along with recent declines in Melbourne, prices so far this year have fallen 1.1% in weighted terms.

The median Sydney price has slid 2%, more than triple the 0.6% decline seen in Melbourne.

In the smaller mainland state capitals, prices have fallen 0.3% and 0.2% respectively in Adelaide and Perth. Brisbane prices have held up better, remaining steady so far in 2018.

Again, largely reflecting softness in Sydney price, prices across the mainland state capitals are now just 0.1% higher than a year ago in average weighted terms.

By individual capital, they’ve fallen 2.9% in Sydney, outpacing a drop of 2.3% in Perth over the same period.

Annual price growth in Melbourne continues to slow, falling to 4.7% last week, while price in Adelaide and Brisbane rose 1.4% and 1.1% respectively over the past year.

Source: CoreLogic

Along with tighter lending restrictions on local and foreign investors, weak growth in household incomes and ongoing affordability constraints in many of Australia’s most expensive markets, an increase in the number of properties currently up for sale is another factor likely contributing to the recent price slowdown, especially in Sydney.

According to the group, total listings in Sydney stand at 26,274, up 22.1% on a year earlier. While not to the same degree, Melbourne listings have also ticked higher, lifting 2.6% to 29,982.

In contrast, total listings in all other capitals except Canberra have fallen over the year, contributing to the recent price divergence in Sydney and Melbourne compared to other parts of the country.

Source: CoreLogic

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