Sydney is in the grips of the worst downturn in house prices for 25 years and experts warn that it will get worse before it gets better.
Since the peak in house prices in the middle of 2017, the median house price dropped more than 8% in the year to September, with expectations that it will continue to fall to -12% before prices recover, according to a report by Domain.com.au.
The last time Sydney experienced a decline in property prices was from 2004-2006 where median house prices fell by 7%. Domain senior research analyst Nicola Powell said the property price decrease is 'driven by banking regulators' and the banking royal commission which in turn is making them wary of who they lend money to.
Powell said: “What Australian Prudential Regulation Authority (APRA) and the Reserve Bank wanted to do was slow price growth. They've achieved what they wanted.”