00:02Sydney's property boom is coming down. A year ago, Jonathan Newsham seized his chance to
00:09buy a home in Parramatta. I'm actually happy that they're coming down because it means
00:14more young people like me can also get their foot in the market.
00:18Over the last month, Brisbane had the biggest drop of 1.5 per cent, followed by Sydney at
00:231.4 per cent. The median dwelling is almost $1.2 million. Overall, Sydney has taken the biggest
00:31hit. Home values are now 8.6 per cent below the February peak. It's not just interest rate hikes
00:37and changes to negative gearing and capital gains tax that have contributed. We're already seeing
00:43housing markets slowing down before interest rates started to rise. And that was simply due to things
00:49like affordability challenges. Giving potential buyers pause for thought.
00:53Buyer behaviour is cautious. They are educating themselves a lot more and they're negotiating
01:01on deals. Lower house prices may be welcome news for
01:04people trying to buy their first property. But for many, any benefit is negated as rising
01:11interest rates make the dream of home ownership feel further out of reach.
01:16To borrow even an amount that's slightly lower than what they might have needed a few months
01:20ago at a much higher interest rate means their borrowing power is going to be significantly
01:24reduced. The Reserve Bank has estimated that less than 1 per cent of borrowers are now in
01:29negative equity.
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