Preliminary data from CoreLogic indicates house prices in Sydney may be starting to cool.
Auction activity resumed in full on the weekend following the Easter break, and the figures showed that weekly clearance rates nationally were 72.1%.
Sydney and Melbourne continue to lead the market, both tracking above 75%:
Although clearance rates increased nationally from the same time last year, the numbers showed a decrease for Sydney in both the total number of auctions and the clearance rate.
This chart shows the break-down of clearance rates in Sydney by region:
In addition, CoreLogic’s Daily Home Value Index shows that the weekly changes in home values for Sydney and Melbourne dipped into negative territory:
The preliminary data shows that Sydney has now reported negative monthly growth of -0.3%. Not a huge drop by any means, but notable given the well-documented surge in Sydney home prices over recent years.
If finalised figures on Thursday confirm the change, it may be that the recent policy measures enacted to control housing risk are starting to impact the market.
That includes last month’s move by the Australian Prudential Regulation Authority (APRA) which capped the issuance of interest-only loans at 30% of all new mortgages.
In addition, the Commonwealth Bank announced last week that it will be raising rates on interest-only loans for both owner-occupiers and investors.
CoreLogic’s summary of the median house price across all states and territories is shown here: