Sydney’s housing market is showing all the hallmarks of a controlled slowdown.
The trend towards lower capital gains across the combined capitals index is mostly attributable to softer conditions across the Sydney housing market, where quarter-on-quarter growth was recorded at 0.8% over the June quarter; down from 5.0% over the March quarter.
Advertised stock levels of rising clearance rates are trending lower an average selling time has started to edge upwards.
Annual growth is eased from a recent peak of just over 18 percent in March to the current pace of 12.2 percent.
We expect that the Sydney housing market will moderate further over the remainder of 2017 due to less investment activity and higher mortgage rates.
However, first home buyer stamp duty concessions, that went live on the 1st of July, may provide at least a temporary respite in the slower growth conditions, based on the higher demand of the more affordable end of the price range.
For Sydney, the more pronounced slowdown is supported by weaker auction clearance rates which have been tracking in the high 60% range across the city over the last three weeks of June.
Sydney’s annual growth rate has slowed to 12.2% over the twelve months ending June 2017, down from a recent high of 18.9% three months ago.
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