Sydney’s housing market might have led the downturn, but now it’s well and truly leading the recovery. Prices have risen for a sixth consecutive month on the back of surging demand. But with more interest rate hikes ahead, economists are warning that something’s got to give.
Sydney’s Property Prices Rise
Sydney’s housing market has been leading the downturn for some time now, but it appears that it is now well and truly leading the recovery. Domain data shows that Sydney’s median property price currently sits at $1,590,932, versus $1,314,383 12 months ago. And over the past five months prices have risen for a sixth consecutive month on the back of surging demand.
According to CoreLogic’s Proptrack report, national property prices rose by 1.2% in April – with Sydney leading the charge with a 1.8% increase. This was the biggest gain since September 2021 and prices are now 4.8% higher than their January low.
However, economists are warning that something’s got to give as more interest rate hikes are expected in the near future. The Reserve Bank of Australia has already raised rates twice this year and is likely to continue raising them as inflation rises and unemployment falls.
The latest figures from realestate.com.au show that Sydney’s median unit price got another +1.2 per cent boost in April to just under $790,000 – while house prices were up 4.5pc since summer according to afr.com/property/residential/.
Despite this positive news for homeowners in Sydney, experts warn that buyers should be cautious when making decisions about purchasing property due to potential risks associated with rising interest rates and other economic factors such as unemployment levels and inflation rates which could affect house prices in the long term.
For those who have already purchased property in Sydney or are looking to buy soon, it is important to consider all of these factors before making any decisions about buying or selling a home as there may be significant risks involved if not taken into account properly.
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