Home prices Sydney: it’s official – real estate is cheaper in 2022 than this time last year

Sydney homes are officially cheaper than they were this time last year, as real estate prices continue their worrying slide in the Harbour City.

Sydney homes are officially cheaper than they were this time last year, as real estate prices continue their slide in the Harbour City.

For buyers looking to time the market, now is the time to strike after PropTrack’s Home Index Price revealed Sydney home values fell 0.5 per cent in August to now sit below their August 2021 level by 0.87 per cent.

After runaway price growth of up to 30 per cent across many markets in metropolitan and regional NSW in 2021, prices have been in a downward spiral since March.

Sydney home values are now 4.8 per cent below their February price peak.

The median value of a Sydney home is now $991,000.

In regional NSW, prices fell 0.28 per cent in August, but they are still up 12.6 per cent over the last 12 months.

Sydney homes are officially cheaper than they were this time last year, as real estate prices continue their slide in the Harbour City. Picture: Julian Andrews.

“Higher interest rates are affecting regions with the highest price points and Sydney – the most expensive market – has so far seen the largest price falls,” PropTrack Senior Economist Paul Ryan said.

“Sydney is the only capital city to see a decline over the year.”

“Regional areas have recorded their largest quarterly price falls in a decade, but we continue to see the biggest price falls in Sydney and Melbourne, with Sydney prices now below their level a year ago, and Melbourne unchanged.

“All capitals are now below their price peaks, with Adelaide recording its first monthly price fall this year.”

Sydney’s price fall is mirroring the national downward trend. Nationally prices have fallen 2.7 per cent from their peak and have lost all their gains in early 2022 to be down 1 per cent, year to date.

Combined regional areas fell 0.34 per cent in August and have now fallen 1.2 per cent over the past three months – the greatest quarterly fall since 2011.

Sydney home prices are expected to continue to fall. Picture: Newscorp- Daily Telegraph / Gaye Gerard

The good news for homebuyers, yet bad news for sellers is that downward pressure on prices is expected to continue, amid a cost of living crisis, inflation concerns and expectation of further rate hikes from the RBA.

“We expect home prices to continue to fall across the country in 2022 and into 2023,” Mr Ryan said.

“Regional areas are now falling persistently but continue to be buffered by the affordability and lifestyle appeal that has led these markets to outperform over the past two years. In the short term, spring will see market activity pick up, despite price falls as buyers and sellers adjust to higher interest rates.”