You know how you basically gave up on ever being able to own a home unless you happen to have rich parents willing to drop a deposit for you or you’re willing to relocate to the middle of nowhere? Well just hold out team, because the Domain House Price Report for the March quarter has dropped and house prices are going dowwwwn.
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Sydney, this ridiculously exxy city of mine, has actually seen a 14.3% fall in house prices since it reached a peak in the middle of 2017. If this pace continues, Domain is predicting that prices will drop below $1 million in the next quarter. Units in Sydney have dropped below $700,000 for the first time in three years.
“Sydney’s current property downturn is the sharpest in more than two decades,” explains Domain Senior Research Analyst, Dr Nicola Powell, “If the pace of quarterly decline remains, prices are likely to dip below $1 million in the coming quarter. A six-figure median house price has not been recorded in four years.”
Melbourne has also declined, but not as drastically as they did last quarter. But it’s still a contribution to the dropping prices that have been happening for the last five quarters.
“Melbourne is currently facing its steepest downturn in more than two decades. House prices have fallen for five consecutive quarters, down 11% from the peak reached at the end of 2017,” says Powell, “Unit prices have held firmer…[but] have deteriorated for four consecutive quarters, pulling prices back 8.3% from the peak notched a year ago.”
Perth house prices are 14% below their 2014 peak, and their units are 16.6% lower. Canberra experienced its steepest decline in a decade, and Brissy basically stayed where it’s at after six years of annual price growth.
Hobart and Adelaide just had to be different, with housing prices rising, rather than falling, although at least Adelaide’s unit prices have fallen after last quarter’s record high. Sorry Hobart but no relief for you, unit prices here are going up, up, up.
“In the space of a year-and-a-half, Hobart has gone from the most affordable city to purchase a unit, to more expensive than Adelaide, Darwin and Perth,” explains Powell, “If the pace of growth continues, Hobart unit prices are likely to overtake Brisbane’s in the coming months.“
