Sydney housing market update [video]
2 min read
Sydney home values were 0.3% higher in November, taking the market 11.9% higher since January’s trough.
The pace of value gains across Sydney was leading the nation earlier in the year, however, conditions have been easing since a cyclical peak rate of growth in May, when home values were rising at the monthly pace of 2%.
The sharp slowdown comes amid higher interest rates in November, but also a rise in advertised stock to be above average, and worsening affordability constraints as well.
The trends are pointing towards a more sustainable rate of growth in home values leading into 2024, with the potential for stabilisation or a dip in values over the coming months.
Multi-speed conditions have become increasingly evident across the capitals, with three cities recording a decline in values over the month.
These were Melbourne and Hobart both down 0.1% and Darwin down 0.3%.
Growth in Sydney home values also slowed sharply, reducing to just 0.3%, the smallest monthly gain through the recovery cycle to date.
The rise in advertised stock levels has played a key role in slowing housing market conditions in some cities.
Vendor activity started to rise through early winter, which is seasonally unusual, following an extended period where new listings consistently tracked at below-average levels.
The persistent lift in selling activity since June has coincided with slower growth in home values.
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