Sydney home prices are falling after years of strong growth.
According to CoreLogic, prices in Australia’s largest and most expensive housing market have fallen 2.1% so far in 2018, extending the losses over the past year to 3.3%.
While there are a number of factors have contributed to the recent weakness, one major reason is there are currently far more properties up for sale.
Nothing quite demonstrates that point than the chart below posted on Twitter by Cameron Kusher, Research Analyst at CoreLogic.
It shows the amount of properties currently listed for sale in Sydney compared to the levels in prior years.
There are currently 26,879 properties listed, an increase of 28.2% on the levels this time last year.
With supply higher-than-usual and demand constrained by tighter lending restrictions, affordability constraints, weak household income growth, reports of fewer foreign buyers and uncertainty about the outlook for prices, it helps explain why prices have been falling since the second half of last year.
You can follow Cameron on Twitter here.
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