Amidst market moderation, Sydney stays strong

Sydneys-housing-market-is-standing-out-from-the-pack-at-the-moment_157_91540_0_14101790_300As the Christmas period approaches, investors in Sydney could be winning out, according to the most recent figures from RP Data. In terms of both price growth and auction volumes, conditions in Sydney are more accommodative than the other capitals this month.

Sydney was one of only five capitals to see any kind of dwelling value growth over the month of November. After a year which has seen prices climb every higher, home values nationally have slowed down more recently. Over November, as measured by the CoreLogic RP Data November Hedonic Home Value Index, the combined capitals saw average dwelling prices fall by 0.3 per cent.

“Although combined capital city home values increased by a healthy 8.5 per cent over the 12 months to November 2014, the annual growth rate is now at its lowest level in the year,” said CoreLogic┬áRP Data Research Analyst Cameron Kusher in a December 1 release.

This makes Sydney’s positive performance all the more impressive. The Harbour City’s dwelling values grew by 1 per cent through the month, putting it in line with growth periods seen earlier in the year. In June and July, the Hedonic Home Value Index measured Sydney’s dwelling value growth as 1.5 and 1.7 per cent, respectively.

What’s more, Sydney was well above the other capitals, even those which have experienced their own significant growth over the year. Melbourne, for instance, saw values fall by 2.6 per cent this November, while Brisbane’s only grew by 0.4 per cent. The only other capital that came close was Perth, with recorded growth of 0.9 per cent.

Conditions were similarly more positive when it came to clearance rates. According to Mr Kusher, despite a recorded drop, Sydney still posted a respectable 70 per cent clearance rate over the month. So despite a general moderation in the real estate market currently being experienced across Australia, investors in Sydney appear poised to continue doing well at this time.

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