House prices in some of the country’s most premium locations have dropped in the past three months, an early sign that the record-breaking run in home values is finally moderating, data from Domain shows.Sydney posted a 33.1 per cent rise in median house priceHouse prices in Sydney’s eastern suburbs have started to weaken amid higher listings, falling affordability and concern about rising interest rates.
“We’re also seeing a large build-up in stock in Sydney and Melbourne, giving buyers more options and reducing price tension.” “So if you used to be able to borrow at 1.9 per cent fixed rate but now have to pay 2.7 per cent, that’s a substantial increase of around 25 per cent in borrowing costs, which significantly reduces the amount by which you can borrow.”“The latest inflation data was far stronger than expected and this suggests a rate hike later this year, but there’s a risk it could come even earlier than our August forecast,” he said.
In Hobart, house prices rose by 8.7 per cent, Perth by 1.8 per cent and nationally by 6.5 per cent. Darwin house prices stagnated during the same period.
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