Sydney house prices fall further from peak – realestate.com.au
Sydney house prices have fallen for the third month in a row since peaking in early spring.
PropTrack's latest Home Price Index released Thursday showed prices fell an average of 0.29 percent from December and are now 0.46 percent below their peak in September.
Based on sales of units, townhouses and houses, the price of a typical Sydney dwelling is now $1.106 million – about 3.4 per cent higher than at the start of 2024.
PropTrack attributed the recent declines in prices to rapid growth in existing property supply and interest rates remaining higher in the second half of 2024.
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Sydney house prices fell in December. Photo: Max Mason-Hubers
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Recent declines in Sydney prices have come amid a national slowdown in the housing market, with national house prices falling for the first time in two years in December. The national decrease was 0.17 percent.
PropTrack economist Anne Flaherty said Sydney prices remained high despite more “modest” growth over the past year.
“As the only metropolitan city with a median above $1 million, affordability is a
It's a significant challenge in Sydney, particularly in a persistently high interest rate environment,” Ms Flaherty said.
According to PropTrack, houses outpaced units in price growth across Sydney in 2024, with houses up 3.6 per cent year-on-year, compared with a single market that appreciated 3.0 per cent.
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Heat map of Sydney House Price Index growth by region. Source: PropTrack
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The average price of a home is $1.443 million, while a home is currently priced at $816,000.
“This (growth) has led to higher performance in more affluent areas of Sydney, such as the outer west and south west,” Ms Flaherty added.
The Outer West and Blue Mountains region experienced the most growth over the year, up 6.83 percent, with a median home price now of $921,000.
In all of NSW, the Richmond Tweed region saw the biggest jump in median price, now up 7.83 per cent year-on-year to $875,000.
Other regions that saw significant growth included Blacktown (6.78 per cent), Parramatta (6.14 per cent) and South Western Sydney (5.92 per cent).
The expert expects Sydney's modest growth to continue until 2025, especially if there is an interest rate cut.
Toongabbie house with $1 million guide.
Cameron Kusher, director of economic research at REA Group, said: “With price growth moderating, stock levels rising and the expected timing of interest rate cuts delayed, we expect weaker price growth than in recent years.”
