House prices rose 40 per cent from the trough in June 2020 through March 2022, according to the research from property group Domain.
The value of a Sydney house rose on average $708 each day during the period, as ultra-low interest rates enacted to stimulate the economy fuelled a housing boom.
“Technically, previous upswings have seen greater rates of house price growth over a longer period of time,” the report says.
“However, the most recent one provided the quickest and sharpest equity boost Sydney has ever experienced – a golden era for homeowners.”
The report says the Sydney housing market is currently “technically” in a downturn with 6.5 per cent shaved from average prices in the first quarter.
In Sydney’s most expensive area, the Eastern Suburbs, the median house price is $3.41 million, down 8.5 per cent from the June 2021 peak.
“This has wiped $315,000 off of the median house price but this is nothing compared to the $927,000 gained in the 12 months leading up to its price peak,” the report says.
It’s taking an average of eight days more for Sydney houses to sell, with Regional NSW homes requiring one more day.
“Judging by history, downturns are generally less severe and half the duration of preceding upswings, so it’s unlikely that we’ll see a return to pre-pandemic prices,” Domain chief of economics and research Dr Nicola Powell said.
“There is greater choice and the pleasure of taking a little time if you’re looking to buy.”
Plans by the NSW government to replace the stamp duty with property taxes should aid affordability, she added.Jump to next article