Why Sydney house prices could be a warning sign for the rest of the country

As interest rates rise, house prices in Sydney are falling and experts say it’s a “clock” for what’s to come in the rest of the country.

After hitting record highs in January, house prices in Sydney are down 1.5 percent, according to CoreLogic data.

While the cost of buying a home in Australia’s largest city remains 22.7 percent above pre-COVID levels, the decline in value is accelerating by the month, driven by rising interest rates.

Martin North of Digital Finance Analytics said Australia was already having a “housing crisis”.

“I actually think the next evolution is falling prices, there’s a very high risk of significant declines,” he said.

“House prices are way too high relative to incomes – debt-to-income ratios of six to nine times are not acceptable.”

Mr North said Sydney was a whistleblower for what was soon to hit the rest of the country.

#Sydney #house #prices #warning #sign #rest #country

Leave a Comment

Your email address will not be published. Required fields are marked *