Money Here's how the latest downturn in Sydney and Melbourne property prices compares to those seen in the past

04:21  17 april  2018
04:21  17 april  2018 Source:   Business Insider Australia

Sydney home prices continue to slide

  Sydney home prices continue to slide Australian home prices fell modestly in early April in weighted terms, reflecting continued weakness in Sydney. Sydney home prices continued to fall in early April, continuing the trend seen in recent months.

Read the full article here . Bedlam in Melbourne . The property market downturns in resources towns since 2012 have been spectacular, but from a policy maker’ s perspective housing markets in This article from Business Insider indicated that prices in Sydney and Melbourne may see a fall.

As a Brisbane investor myself, it has been a difficult 5 years watching both Sydney and Melbourne property prices take off, as I am sure it has been for many others. But the biggest downturn seen was in Overseas Migration, slashed by about 70%!

Sydney and Melbourne home prices have fallen 2% and 0.6% respectively so far in 2018.© AAP Image/Joel Carret Sydney and Melbourne home prices have fallen 2% and 0.6% respectively so far in 2018.

Home prices in Sydney and Melbourne are now starting to decline following years of strong growth.

According to CoreLogic, the median dwelling price in Sydney, Australia's most expensive housing market, has fallen 2% this year, adding to the modest losses recorded in late 2017.

Many are now pondering as to what will happen next?

Some think further losses are on the way as tighter lending restrictions, affordability constraints, weak household income growth and increased supply act in tandem to keep prices under pressure.

Sydney home prices are still sliding

  Sydney home prices are still sliding Home prices across Australia's state capitals were flat last week in average weighted terms. Sydney prices continued to weaken, dropping 0.1%. They've fallen 2% this year, leaving the drop over the past 12 months at 2.9%.According to CoreLogic, a small 0.1% increase in Brisbane, along with flat results in Melbourne and Adelaide, were able to offset declines of 0.1% in both Sydney and Perth.

So then how do you explain property prices in Sydney going up over the 2008-2011 period, isn’t it In fact the Sydney market did lead our (Australian) downturn and recovery, and it looks like perhaps it will do the Where would the best to purchase a investment property in Melbourne for up to 350K.

As a Brisbane investor myself, it has been a difficult 5 years watching both Sydney and Melbourne property prices take off, as I am sure it has been for many others. But the biggest downturn seen was in Overseas Migration, slashed by about 70%!

Others, however, suggest the recent weakness is unlikely to last for long, pointing to strong employment and population growth as factors that will help to support prices in the near future.

While past performance is not indicative of future returns, if history is any guide, the recent weakness could extend for some time yet.

Australian home prices are lower than a year ago

  Australian home prices are lower than a year ago Australian home prices are now lower than a year ago, in average weighted terms. According to CoreLogic, prices across Australia's five mainland state capitals fell by 0.1% over the past year in average weighted terms, a result largely reflecting outright declines in Sydney and a sharp slowdown in Melbourne.

How do Melbourne ’ s areas compare ? Melbourne ’ s inner city. How do you choose an investment property in Melbourne ? We believe that 80% of your property ’ s performance is related to Firstly, the downturn on the market which I’m sure will eventually come so as the interest rate rise.

Property prices growth in Australia over the past decade has been characterised by substantial value rises in Sydney and Melbourne while elsewhere During the downturn all regions of the country recorded declines with national values falling by 7.9% between February 2008 and January 2009.

As seen in this chart from Cameron Kusher, Research Analyst at CoreLogic, posted on Twitter today, the latest downturn in Sydney is both shorter and more modest than most price corrections seen in the past.

a close up of a map© Business Insider Australia

Although each was driven by different factors, be it higher interest rates or global factors, it suggests the recent downturn is not all that unusual.

The same could also be said for Melbourne's latest price correction, far smaller and shorter than that seen in Sydney to this point, with the latest decline very modest in comparison to those seen in the past.

a close up of a map© Business Insider Australia

Right now, the declines in both Sydney and Melbourne appear to be moderating, especially in the former, compared to those reported late last year and in early 2018.

While that suggests that prices may soon start to level off, or even increase, in the months ahead, as both charts clearly demonstrate, that's no guarantee that the bottom of the price cycle has been hit.

Mortgage arrears stable but set to rise as house prices fall

  Mortgage arrears stable but set to rise as house prices fall There are six suburbs where the delinquency rate on mortgages is zero — that is, no-one is behind on their home loans. Well, that is not completely true. 

This is unusual in that property price downturns are usually preceded by significant interest rate increases. Consistent with the fall in Sydney and Melbourne property prices , auction clearance rates and home sales have also fallen.

Softening auction clearance rates and a regulatory crackdown on lending to investors point to a cooling in the hot residential property markets of Sydney and Melbourne . UBS economist Scott Haslem is the latest , writing in a note that the bank sees a "moderation of strength", not a " downturn ", while

You can follow Cameron on Twitter here

NOW READ: A history of Australian housing market downturns, in one chart

Pictures: Melbourne vs. Sydney

Melbourne vs Sydney: It's a rivalry that dates back as far as the founding of the cities. The two have been bickering for years about which metropolis is better, so it is time to look at both the pros and cons of each city with completely impartial eyes. Both are amazing cities, but take a look at which one you prefer. Melbourne vs Sydney

Sydney renters paying $582 a week, while Darwin and Hobart enjoy best rental yields .
On average Australians are paying $427 per week in rent with rents rising 1.1 per cent in the first quarter of this year. Sydney-siders paid the highest median rent ($582 per week), while Adelaide residents paid the least ($374) out of all the capital cities.But it was Hobart's landlords who scored the best deal with rents increased by 5 per cent in the last quarter, and 11.7 per cent in the last 12 months.Property in the Tasmanian capital are also currently enjoying the second highest rental yield in the country (5 per cent) — second only to Darwin (5.

—   Share news in the SOC. Networks

Topical videos:

This is interesting!