Selective discounts expose brutal reality of current housing downturn

Australians cheering recent home prices falls may be disappointed: the kinds of homes becoming cheaper are overwhelmingly properties most buyers wouldn’t have been able to afford even with a discount. New PropTrack figures have revealed Sydney’s eastern suburbs, north shore and northern beaches have become the epicentre of the slump, with prices in these areas dropping faster than in the rest of the city. These three regions together represent the most expensive housing markets in the country and prices, even when discounted, typically demand huge budgets. Ray White chief economist Nerida Conisbee said the current downturn remained driven by falls “at the top end”. REA Group economist Anne Flaherty said many buyers remained priced out of much of the city despite recent price falls. MORE: Hated Aus store rule behind big theft surge REA Group economist Anne Flaherty said Sydney was more sensitive to rate changes than other cities due to the higher home prices. “It’s the same story of affordability,” she said. “Sydney’s median house price is so high that a shrinking pool of buyers can afford to buy one. “The affordability constraints make it increasingly difficult to buy in that high ...