It comes as real estate agents report properties in some suburbs are already selling for 10-20 per cent less than what they would have sold for last year.PropTrack executive manager of economic research Cameron Kusher said the cash rate would likely hit 2.5-3 per cent by Christmas, significantly reducing the borrowing capacity of buyers in higher priced markets.
He said houses in the Northern beaches, Ryde, the city and inner south were likely to experience the largest falls while those in the outer south west, Blacktown and Blue Mountains could be better protected by a potential increase in first homebuyer activity.“First homebuyers will have seen prices falling for a good nine months by the start of next year and they’ll have the option to take up federal government grants and not pay stamp duty,” he said.
Tim Wirth from LJ Hooker Seaforth said he was already seeing a shift with properties selling 10 per cent cheaper than during the peak. Monica Shor from Ray White Unlimited – Bondi Beach said property in Bondi Junction had dropped 10-20 per cent over the past three months. “I think prices have stabilised slightly and they are probably realigned to where they should have been,” she said.Nuri Shik from Belle Property Potts Point said first home buyers were returning as prices fell.Hallmarq buyers agent Rebecca Hall said while premium houses in the Northern Beaches were still selling well, it was possible to negotiate price adjustments of up to 10 per cent on less desirable homes.