Peter Overton: Our property market is falling but it’s not collapsing and there is one area that is bucking the trend.
It all means the Reserve Banks hands are tied and the official interest rate isn’t expected to move anytime soon.
Ross Greenwood: Like a game of parcel the parcel, the most exposed to price falls are those who bought most recently.
Tim Lawless: We’re already starting to see some of those recent buyers see some negative equity.
Ross: Average Sydney house prices in the past year fell 6.2 per cent. Apartment prices down 0.7 per cent.
Aside from a 1.6 percent gain for the central coast, prices right across greater Sydney have gone backwards, it’s everywhere you look.
The heaviest falls are in Ryde, the Inner West, Baulkham Hills, Hornsby and Blacktown.
The median house price is now just over $1 million.
Tim: Over the past five years, we have seen many of Sydney’s housing markets rise by more than 70 per cent.
Ross: The keys to property prices have always been affordability and population growth. As many people found themselves priced out of the Sydney market, they moved here to the Central Coast.
The population rose and that’s the reason why prices here are more resilient than metropolitan Sydney.
Rod White has been in his Central Coast home for 19 years.
Rod: I think its been a hidden gem. We’re an hour to Sydney; we’re an hour to Newcastle.
Ross: He recently sold for just for over a million dollars, the Sydney average but look at what your million will buy.
Ross: Rod, you’ve got a bit of inside/outside here mate? It’s fantastic.
Rod: Yeah, Rossco, we spend a lot of time out here cooking barbies, and having a couple of beers obviously.
Ross: But the funny thing is many people don’t appreciate just how much bang for their buck they can get out of Sydney.
Anthony McVicker: Affordability, the people who can’t buy in Sydney and obviously the lifestyle with the beaches and the parks.
Ross: John Singleton’s championed the area for decades. He says West is good, but the north is also moving.
John Singleton: here we have Western access, fine by there, but here, with the NorthConnex – 40 minutes and you’re here.
Ross: Slack prices mean the Reserve Bank can’t move interest rates up, tomorrow or anytime soon.
But lenders might move rates anyways.
Tim: The big wild card is of course what happens with mortgage rates outside of any cash rates movement because we are starting to see signs of upwards pressure.
Ross: Ross Greenwood, Nine News.