CoreLogic’s daily dwelling values index shows that Sydney home values have fallen a heavy 10.7% from peak, with almost all of this decline happening after the Reserve Bank of Australia (RBA) first hiked interest rates in May:
CoreLogic: Sydney dwelling values down 10.7%.
While the pace of decline has moderated, it is still running at a hefty 5.0% quarterly pace:
CoreLogic: Sydney dwelling values still falling fast.
This is particularly bad news for Sydney’s real estate agents, because the sharp drop in house prices has been accompanied by a 22.2% fall in sales volumes over the year to October, according to CoreLogic:
CoreLogic: Sydney leads national decline in home sales.
Sydney’s 22.2% decline in sales is nearly triple the combined capital city average (-8.3%).
So, Sydney has been hit hardest by both falling house prices and sales volumes. And lower sales volumes and prices necessarily means less commissions for the city’s real estate agents.
It also means that the NSW Government will earn significantly less from stamp duty receipts.
Won’t somebody think of the poor real estate agents?
