Sydney property prices begin to plummet

The cracks are beginning to show in the Sydney property market, with the inflated prices from six months ago dissipating.

In some suburbs, prices have fallen as much as 30 percent, as the median house price copped its largest knock since August 2008.

In the three months to December, the harbour city’s median house price fell 1.3 percent, tumbling a further 2.5 percent in the following three months to March, CoreLogic data shows.

It’s the steepest drop in a decade, with the average price of a home now priced at $880,743.

CoreLogic’s Kevin Brogan said the tide was slowly turning.

“I don’t think there’s any cause for panic,” he said.

“At the moment it’s trending towards being a buyer’s market, but I think what we’re seeing is quite a gradual adjustment to the market.”

“I think the market has certainly been corrected. We’ve got vendors now that are genuine about selling and meeting the market,” auctioneer Sebastian Bonaccorso from Elders Inner West said.

He and agent Gavin Sanna successfully sold a three bedroom home at Earlwood today for $1.522 million.

“I’m finding buyers who were able to borrow 1.5 last year can only get to 1.2 this year,” Mr Sanna said.

Over the past fortnight, the auction clearance rate dropped to just 56.1 percent.

Compare that to this time last year, when 78 percent of homes were selling.

“In 2017 we were averaging 4 or 5 bidders at our auctions, now we’re averaging 2 bidders at our auctions,” Damien Cooley from Cooley Auctions said.

Despite the downturn, Mr Cooley experienced a quick auction today, with a warehouse conversion selling for $2.7 million after only five bids.

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