The Sydney market finished the month as the Best performing capital city with an increase of 5.6%, it also proved to have the second lowest rental yield units at 3.9%.
Once again Sydney was names the most expensive city with a median dwelling price of $775,000.
In Sydney the annual rate of growth is more than have since peaking in July last year at 18.4 percent over the past 12 months city dwelling values are up by nine point one percent with hardly any difference between the growth and house values compared with unit values while the annual trending growth remains strong.
Other indicators are pointed towards softer conditions ahead listing numbers are rising despite a sharp slowdown and newly advertise properties being added to the market.
With more stock available for sale we may see by is gaining some leverage in the marketplace.
With more choice and more bargaining power properties are now taking substantially longer to sell compared with a year ago however discounting rates haven’t moved higher as yet while the rate of value growth has slowed over recent months
Sydney and Melbourne have also seen the annual rate of growth slip back to below 10 per cent, with the July indices showing a respective 9.1 per cent and 7.5 per cent capital gain over the past twelve months.
Previously Sydney capital gains peaked higher with Sydney reaching a peak rate of annual growth in July last year when dwelling values were rising by 18.4 per cent per annum.
We’re also seeing first home buyers are at lower levels across most states, and in particular, at record low levels of participation across Sydney.
Sydney properties are now selling in 40 days on average, which is two weeks longer than a year ago.
As homes take longer to sell, vendors are starting to apply larger discounts to their asking prices.
Potentially, as buyers gain some leverage in the market and vendors become more flexible in their pricing expectations, this will assist in alleviating price pressures from the hottest markets such as Sydney.