House prices could be set to drop in potentially good news for all the Gen Zs and Millennials who are sick of being told that to buy a house, they’ll need to stop doing anything remotely fun.
I would simply love to get the occasional Uber Eats without feeling like I’m swallowing the keys to my future home, thanks!
The Commonwealth Bank has predicted that the median house price in Sydney could fall by $200,000 by the end of 2023, as per News.com.au. Over that same period, the median house price for the whole country could drop by eight per cent.
That info comes after CoreLogic found that in February 2022, Sydney recorded its first house price drop since September 20221 as per Nine News.
While Sydney was the only city with a drop in house prices, Melbs’ prices also stayed flat. Shout out to my Malbourne-accented besties.
“Sydney and Melbourne have shown the sharpest slowdown, with Sydney (-0.1 per cent) posting the first decline in housing values since September 2020,” Tim Lawless, CoreLogic’s director of research said as per Nine.
“Melbourne housing values (0.0 per cent) were unchanged over the month, following similar results in December (-0.1 per cent) and January (+0.2 per cent).”
The other capital cities all saw a slight rise in prices. Brisbane bumped up 1.8 per cent, Adelaide bumped up 1.5 per cent, Hobart 1.2 per cent, Darwin and Canberra 0.4 per cent and Perth 0.3 per cent.
Sydney’s median house price for February 2022 was still $1,116,219 though. So not exactly cheap then.
Experts have chimed in on what the plateauing-slash-falling house prices could mean. IMO, this is interesting even if you’re not looking to buy a house. As an avid Selling Sunset and Luxe Listing fan, I just like being kept in the loop.
Sally Tindall from RateCity.com.au explained some of the possible consequences of the house price drop for first home buyers.
“Property price drops will provide a reprieve for people hoping to get into one of Australia’s many overheated property markets, however, would-be first home buyers should crunch the numbers before they pop the champagne,” Tindall said, as per News.com.au.
“If property prices fall on the back of rising rates, buyers might not need to stump up as much for a deposit. They will, however, need to make higher monthly repayments, which means they won’t be able to borrow as much from the bank.
“First home buyers should think carefully about overextending themselves in a market where rates are set to rise and prices are forecast to fall. Make sure you have a buffer to ride out any bumps.”
I’m going to be watching my saved houses on RealEstate.com (all multi-million dollar mansions, OFC) with a keen interest.