Sydney Home Buyers Have Been Dealt Some GOOD News For Once
While it's still early days, Sydney home buyers have been dealt another win with the news that median property prices have dropped for the second month in a row.
And it was quite a reduction indeed; following on from September's 0.1 per cent decrease, the CoreLogic Home Value Index indicates that October had a further 0.5 per cent drop to hit $905,917.
Coupled with August's zero per cent growth, it means that the average cost of a Sydney city home fell by 0.6 per cent for the quarter.
According to CoreLogic's head of research Tim Lawless, the most significant factor pulling prices down was weaker demand from investors and owner-occupiers turning to cheaper housing outside of Sydney.
"Investors are facing premiums on their mortgage rates which are likely to act as a disincentive [to buying]," he told realestate.com.au.
But John McGrath, founder of McGrath Estate Agents, said that prices wouldn't get much lower.
"Sydney's population is growing fast and there is still a large shortage of homes so it is highly unlikely we will have a major correction," he said.
"We're moving to a normal market at last... it's a big positive. Buyers won't need to make desperate plays to get into the market."