[ad_1]
Housing prices in Sydney record their largest monthly drop in 14 years and remain on the path to one of the sharpest declines of all time.
Prices in the city fell 1.3% in November, compounding sharp declines in previous months, according to data researcher CoreLogic data.
Melbourne, where prices fell 0.9% this month, is not far behind. Prices in Brisbane rose slightly by 0.1%, while Adelaide was stable.
The trough between the peak and the trough in Sydney is now expected to be around 15%, the biggest reduction since CoreLogic started recording these numbers.
"The biggest drop was 9.6% during the last recession, from 1989 to 1991," said Tim Lawless, head of research at CoreLogic, to the Australian. "It seems that this slowdown will be the biggest and the longest since the beginning of our records."
Lawless blamed a sharp drop in mortgage lending over the last two years, while increased supply – especially of apartments – was linked to poor affordability and declining demand from foreign buyers.
The dark outlook on the real estate market was compounded on Friday by figures showing a steady decline in real estate credit.
Data from the Reserve Bank of Australia showed that homeowner loans withstood annual growth of 7%, but that loans to investors had collapsed to 1.3%.
Tom Kennedy, an economist at JP Morgan, said: "Most of the moderation was achieved through the investor cohort, where increased regulatory oversight and macroprudential restrictive measures weighed on new borrowing and drove annual growth to an anemic of 1.3%. "
Source link
