Home prices in Sydney and Melbourne, Australia’s largest and most expensive property markets, have been falling for several months.
The median Sydney price has now fallen by 3.4% over the past 12 months, the steepest decline since mid-2009. Melbourne prices, while still positive over the year at 3.7%, are also growing at the slowest pace since April 2013.
Reflecting those trends, auction clearance rates in both cities are also at multi-year lows.
Here’s where Sydney clearance rates currently sit compared to recent years. The chart was posted by Cameron Kusher, research analyst at CoreLogic, on Twitter today.
And here’s the same chart, only for Melbourne.
While clearance rates move around from week-to-week, the levels in both Sydney and Melbourne are lower than what’s been seen in prior years.
That fits with other most other housing market indicators which have also softened recently.
The slowdown in Sydney and Melbourne coincides with the introduction of tighter lending standards, especially for interest-only mortgage loans, introduced in early 2017.
Affordability constraints, diminished activity from local and foreign investors, along with a general cooling in sentiment towards the outlook for prices, are other factors that have contributed to the recent pullback in prices.
You can follow Cameron on Twitter here.
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