CoreLogic’s daily dwelling values index shows that Sydney’s housing correction has accelerated.
Sydney dwelling values have declined by 0.4% over the past 28 days. The rate of decline has accelerated over the past month.
The auction market has matched the decline in Sydney dwelling values, with clearance rates tanking.
CoreLogic’s final auction report revealed that only 54.8% of auctions cleared last week in Sydney. This was the worst result Sydney has seen in nearly two years (i.e., since 53.2% in the week ending 18 December 2022).
Sydney’s final auction clearance rate has also been below 60% for seven consecutive weeks.
The monthly average final clearance rate (57%) is also at its lowest since December 2022.
The chart above plots monthly average final clearance rates against quarterly price growth. As you can see, auction clearances and prices are strongly correlated.
CoreLogic’s latest chart pack also shows that Sydney recorded the most significant rise in listings (9.5%) in the nation in the year to November, which is weighing on prices and auction clearance rates.
Source: CoreLogic
Realistically, Sydney home prices will continue to fall until the Reserve Bank of Australia cuts interest rates.
Financial markets anticipate the first rate cut to occur in April 2025.
