Sydney house prices still falling
Published September 1st, 2006
House prices continue to fall in Sydney according to the latest monthly auction results from independent industry analysts, CPM Research.
During August the median price of a freestanding house sold at auction was $716,000 (US$546,800) compared to $830,000 a year earlier, a fall of 14%.
Clearance for all market sectors during August was only 56%, equal to the clearance for July and the lowest level of clearance for the year.
This compares though to significantly improved clearance at the top end of the market. During August properties valued at more than $1 million achieved a clearance of 75%.
“Buyers at the top end of the market are less sensitive to interest rate rises and have perceived the decline in prices as an opportunity to buy, pushing clearance up to higher levels. Equally, vendors in the $1 million market have more room to adjust reserves to achieve a successful sale”, said Mr John Wakefield, managing director of CPM Research.
After falling 6% to only 54% in July, freestanding house clearance improved to 57% during August. At the same time, clearance of home units, at 55% in August, fell to its lowest level since November 2005.
