The median price of homes in some Sydney suburbs which broke $1 million in the recent boom are now tumbling as the housing market cools.
According to Domain Group’s March 2016 house price data, at least 11 suburbs in Sydney had their median house price fall below $1 million from September to March.
The suburb which recorded the biggest drop in the past six months was Strathfield South in the Inner West whose median price fell from $1,295,000 in September to $996,500 in March.
This was followed by South Hurstville from $1,115,000 to $980,000, Baulkham Hills from $1,080,000 to $985,000 and Mortdale from $1,080,000 to $997,500.
Domain reports there were 243 suburbs whose median house price sat above $1 million but 25 were on the verge of being dropped with a safety net of $100,000 or less.
While it’s a good time for people looking to get their foot into the housing market, it’s also a testament to the cooling sentiment towards Australia’s residential property market.
“The nouveau riche suburbs are having to recalibrate their mindset of having a million-dollar median,” Domain Group senior economic Andrew Wilson said noting that the decline in million dollar suburbs would most likely continue.
Recent data shows house prices in Sydney are pulling back up with a median house price of $807,500 and median unit price of $665,000.
The property boom has been fuelled by record-low interest rates and an influx of foreign buyers encouraged by the falling Australian dollar over recent years.
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