House prices in Sydney have been falling fastest in two decades, at 4.5% in the last quarter, and over 12% over the past 12 months, according to CoreLogic Data.
The current house prices is back to mid-2016 levels. Some leading economists estimated the price levels could fall by 25%, amid low clearance rate and tightening lending regulations.
Although sharpest fall in many decades, Sydney remains one of the most expensive cities in the world, setting at around $1m mark, which is still un-affordable for most of first home buyers.
If based solely on
affordability, Sydney house prices could fall by 50%, on par with the levels in
Adelaide and Brisbane. However, this could create a catastrophic effect for the
Australian economy, on which RBA and the Government are on close watch for
necessary interventions, such as loosing lending practices or easing fiscal