The latest figures from property market analysts CoreLogic RP Data show that Sydney property prices dropped in May for the first time in six months. But the company goes on to says that these falls are likely to be short lived.
The May Home Value Index found the city’s home prices fell 0.7% over the month, while nationally prices in the main state capital cities dropped 0.9%. The statistics for Sydney showed the first decline in prices since November 2014. Average prices in Melbourne sank 1.6% in the month.
RP Data head of research Tim Lawless called these price falls, especially in Sydney, “an adjustment” after a period of strong growth in which prices have soared. Since the start of the year, Sydney’s average property prices have jumped more than 6% and in the past 12 months they have risen 15%.
“I wouldn’t expect it to be a trend because outside the index there was a lot of data supporting the onwards and upwards values,” Lawless said. “This is more a correction in the index after a couple of very strong months of data flows. We’d expect a return to growth over the coming months.”