Experts have predicted that Sydney house prices will fall by up to 10 per cent over the next 12 to 18 months.
Property consultant CoreLogic's monthly statistics revealed that property prices across the nation dropped by 0.3 per cent in December, with a 0.9 per cent fall in Sydney.
“From a macro perspective, late 2016 marked a peak in the pace of capital gains across Australia with national dwelling values rising at the rolling quarterly pace of 3.7% over the three months to November," said CoreLogic's head of research, Tim Lawless.
“In 2017 we saw growth rates and transactional activity gradually lose steam, with national month-on-month capital gains slowing to 0% in October and November before turning negative in December.”
But the downturn – which is being blamed on cautious home buyers and stricter lending policies – might not be enough to help first home buyers get a foot on the property ladder. Sydney remains the country’s most expensive market where the median house price is still $1,058,306, with a median apartment value of $774,124.
It might be time to pack up and head to Hobart – their housing market was the strongest for the month, quarter and year. But it's the state's affordability, compared to other capitals, that's behind the rise.
"Although credit policies are likely to remain tight, we expect mortgage rates to remain low in 2018, providing a positive lending environment for those who are able to secure credit," Lawless added.