{"id":38987,"date":"2022-06-08T13:03:30","date_gmt":"2022-06-08T01:03:30","guid":{"rendered":"https:\/\/propertynoise.co.nz\/au\/?p=38987"},"modified":"2022-06-08T13:03:30","modified_gmt":"2022-06-08T01:03:30","slug":"declining-sydney-property-prices-a-forecast-for-the-rest-of-australia-watch","status":"publish","type":"post","link":"https:\/\/propertynoise.co.nz\/au\/declining-sydney-property-prices-a-forecast-for-the-rest-of-australia-watch\/","title":{"rendered":"Declining Sydney property prices a forecast for the rest of Australia | WATCH"},"content":{"rendered":"

PHOTO: Sydney house prices are dropping in value every month. (AAP: Dan Himbrechts<\/span><\/span>)<\/cite><\/strong><\/p>\n

As interest rates rise, Sydney house prices are dropping\u00a0and experts say it is a “bellwether” for what is about to happen across the rest of the country.<\/p>\n

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Key points:<\/h2>\n
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  • Interest rates are driving the decline in value of Sydney properties<\/li>\n
  • The Reserve Bank of Australia increased the cash rate to 0.85 per cent.<\/li>\n
  • The average mortgage in NSW is $786,035<\/li>\n<\/ul>\n
    \"interest<\/a><\/div>\n
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    Why the biggest interest rate rise in a generation affects every Australian<\/a><\/h2>\n<\/header>\n<\/div>\n<\/section>\n<\/div>\n

    After hitting record highs in January, Sydney<\/a> housing values have fallen 1.5 per cent, according to CoreLogic data.<\/p>\n

    While the cost of buying a home in Australia’s largest city remains 22.7 per cent\u00a0above pre-COVID levels, the decline in value is getting bigger by the month, driven by rising interest rates.<\/p>\n

    Digital Finance Analytics’s Martin North said Australia already had\u00a0a\u00a0“housing affordability crisis”.<\/p>\n

    “I actually think the next evolution is falling prices, there is a very significant risk of seeing significant falls,” he said.<\/p>\n

    “Housing prices are way too high relative to incomes \u2014\u00a0debt to income ratios of six, to nine\u00a0times are not acceptable.”<\/p>\n

    Mr North said Sydney was a bellwether for what would\u00a0soon hit the rest of the country.<\/p>\n