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CBD apartments are among the weaker Sydney markets. Picture: John Feder

Falls in Sydney home prices have been slowing over the past month but the market will be on a knife edge this spring as government and banks scale back support for struggling households.

The median home price inched down 0.5 per cent over August, nearly half the rate of decline recorded over July, according to CoreLogic’s hedonic home value index published Tuesday.

The median price of a Sydney home is now about $860,000 – 2.6 per cent lower than it was four months ago but 9.8 per cent higher than a year ago.

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CoreLogic noted there was wide variance in price movements across city regions.

Higher end markets such as the Sutherland Shire and northern beaches, along with Parramatta and Ryde, recorded the biggest declines in values.

Prices in much of the Greater Western Sydney area were more resilient, with values in the southwest, Blacktown and Hills region recording only minor falls.

The biggest fall was observed in the northern beaches, with a 1.5 per cent average drop over August, while the best performing market was the Central Coast with a 0.3 per cent rise.

CoreLogic analyst Eliza Owen said the falls in pricier regions were typical of the start of housing downturns.

Prices tended to fall in more expensive markets first and the weakness then “rippled out” to cheaper suburbs, she said.

“The Central Coast is probably lagging Sydney, while in the more expensive areas there may be more willingness for vendors to adjust their expectations,” Ms Owen said. “More expensive areas are also more volatile because they had larger price rises before the pandemic.”

CoreLogic’s Eliza Owen said vendors may be adjusting their price expectations.

Ms Owen described the market as “stable” but with high “downside risk” because of the potential for another outbreak and further job losses, which would thin the pool of buyers.

She pointed to Melbourne as an example of what would happen to Sydney if there was another outbreak. Melbourne median price dropped 1.2 per cent for the month and 5.6 per cent over the past four months – which Ms Owen said was “significant”.

Prices were largely unchanged in Brisbane, Adelaide and Perth.

CoreLogic’s head of research Tim Lawless said Sydney price falls were lower than last month due to buoyant buyer activity and fewer homeowners listing their properties, which meant sellers didn’t need to make major price cuts to get their homes sold.

Bank support for homeowners such as mortgage deferral periods also prevented a widespread rise in distressed sales that would otherwise drag down prices.

Buyers are more likely to get discounts in areas with lots of high density units.

“This could potentially change as fiscal support starts to taper at the end of September and distressed borrowers taking a repayment holiday reach their six month check-in period,” Mr Lawless said.

“The timing of these two events could be the catalyst for a gradual rise in distressed listings … it could signal that vendors will need to offer up greater discounts.”

My Housing Market economist Andrew Wilson said the region most in danger of mass distressed sales was the CBD and its surrounds.

Landlords in the area were struggling to tenant their properties due to travel restrictions, which kept away international students and travellers who normally rented their homes out, he said.

Realestate.com.au chief economist Nerida Conisbee said the market was more uneven than normal. “You might get a bargain on a CBD unit, but not a luxury Bronte house – differences in the market have become more extreme.”

HOME PRICE MOVEMENTS IN SYDNEY REGIONS

(by three-month change)

Central Coast 0.5%

Hills region -1.6%

Blacktown -0.9%

City and inner south -1.4%

Eastern suburbs -1.0%

Inner southwest -2.6%

Inner west -2.9%

North shore -2.8%

Northern beaches -3.8%

Outer southwest -0.6%

Outer west and Blue Mountains -1.0%

Parramatta -2.6%

Ryde -2.5%

Southwest -1.9%

Sutherland Shire -3.9%

Greater Sydney -2.1%

Source: CoreLogic, includes data for houses and units

The post Sydney housing market ‘uneven’ as price changes vary across regions appeared first on realestate.com.au.

23 Tettenhall Ridge, Belmont, sold for $655,000 at auction.

EIGHT first-home buyers joined an online auction as a renovated 1970s character home in Belmont sold $35,000 over its reserve price.

The buyers punched in bids to an auction app chasing the keys to the four-bedroom house on Saturday.

The brick veneer house at 23 Tettenhall Ridge sold for $655,000.

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Bidding opened at $579,000, with seven in the running when the price hit the $620,000 reserve.

The eighth bidder entered the fray as bidding neared $650,000.

23 Tettenhall Ridge, Belmont, sold for $655,000 at auction.

Barry Plant, Highton agent Kieron Hunter said the character and presentation were driving buyers to the property, quoted below $600,000 during the campaign.

The kitchen and bathroom were new additions.

A Highton couple bought the 631sq m property, Mr Hunter said.

“Everyone who was bidding on it was a first-home buyer,” he said.

23 Tettenhall Ridge, Belmont, sold for $655,000 at auction.

“Everyone loves that character from the 1970s now. Anything mid century, anything with high ceilings now is really sought after.”

First-home buyers are making the most of their chances to break in to the property market amid the COVID-19 pandemic, with incentives like stamp duty concessions extended until 2021 and record low interest rates.

“They see it as a good opportunity to get in the market,” Mr Hunter said.

“It’s the most competition I’ve seen, really since 2017-18.”

23 Tettenhall Ridge, Belmont, sold for $655,000 at auction.

Low stock on the market also helped drive competition.

“I’m sure there is every reason why they want to buy,” he said.

“They are sick of paying rent.

“The rates have come down or maybe they’re still living at home with their parents and being in lockdown gives them a better excuse to get out there.

23 Tettenhall Ridge, Belmont, sold for $655,000 at auction.

“But the low interest rates just pave the way for them if they’ve got their deposits.”

Victorian Treasurer Tim Pallas last week revealed about 2000 first-home buyers in Geelong received stamp duty waivers or concessions on properties valued under $750,000 in 2019-20.

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The post Eight first-home buyers compete for 1970s era Belmont property appeared first on realestate.com.au.

Tyrrell Hill and his wife Taew Srisa-ard are excited to have finally found an affordable house in Thomson. Picture: Peter Ristevski

A couple who moved back to Geelong from Sydney to get a foot on the property ladder have realised their dream after beating competition for a renovated Thomson house.

Hayeswinckle, East Geelong agent Adam Murphy said the three-bedroom house at 8 Robertson St went under offer within days and attracted multiple offers.

Tyrrell Hill and his wife Taew Srisa-ard paid $435,500 for the 650sq m property, ending a long search for their first home together.

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First-home buyers were lining up to check out 8 Robertson St, Thomson.

Mr Hill said they had looked at about 100 houses across Geelong’s most affordable suburbs since moving back from Sydney 15 months ago.

This one appealed because of the work had that already been done, including a new kitchen and renovated bathroom.

“I moved to Geelong because it was entirely unaffordable in Sydney,” he said.

“I had been looking extensively and the reason was I didn’t want to extend myself on borrowing in the current situation.

Taew Srisa-ard and Tyrrell Hill outside their new house with Hayeswinckle, East Geelong agent Adam Murphy. Picture: Peter Ristevski

The renovated interior was a big attraction.

“We had a number of things that we were looking at … we were looking at the best value and this house was very much in our range.”

Mr Murphy said the house attracted mainly first-home buyers chasing a renovated entry-level home.

He said 20 private inspections over the first weekend of the campaign netted multiple offers.

Polished floors and lots of natural light are a feature of the loungeroom.

Fellow Hayeswinckle agent Yan Lin said the 3219 postcode, which covers Newcomb, Thomson, Breakwater, St Albans Park and Whittington, as well as pricier East Geelong, had become the go-to area for buyers wanting to spend under $500,000 and get a decent parcel of land.

She said tipped the area would jump in value in next five years as more people recognised its potential.

“Thomson is one of those areas that people weren’t interested in before but because of the budget they are looking at it,” she said.

Thomson’s median house price has risen 4.9 per cent to $417,500 over the past 12 months, Hometrack data shows.

The post Couple gets lucky property break with quick Thomson sale appeared first on realestate.com.au.

Todd Carney has sold his Waverley investment apartment. Picture: Zak Simmonds

Former NRL star Todd Carney has sold his Waverley investment apartment.

Carney bought the one-bedroom, one-bathroom property for $607,000 in 2011.

It was snappily sold with no disclosed price by Albert Sassoon at McGrath, but buyers were being told $900,000. It had been a $695 a week rental in late 2019 having first yielded $550 a week on its purchase.

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Carney bought the unit in 2011. Picture: Zak Simmonds

The property has one bedroom and one bathroom.

Located on Birrell St, the apartment offers a modern kitchen, open plan living and dining, and a private courtyard.

The sale comes ­shortly after the disposal of his Sans Souci investment property at $600,500 in June.

Carney is also set to auction off a Coogee two-bedroom apartment that he bought in 2010 for $880,000.

It had been a $695 a week rental in late 2019.

The living space.

Carney, who has been dating the former Married At First Sight star Susie Bradley, recently opened a new tattoo studio, Island of the Gods Ink, in Bali. He participated in dry July.

There is a $563,500 median price for Waverley’s one-bedders, according to realestate.com.au.

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