Sydney home prices will continue to plummet for the next three years

Good news for first home buyers! Sydney home prices will continue to plummet until 2020 – as experts warn exploding family debt is to blame

Sydney housing market is showing no signs of heating up any time soon
Bank analysts predict property prices will continue to drop until at least 2020
The rest of Australia is also set to follow the trend, as markets fall six per cent

By Ben Hill For Daily Mail Australia

Published: 22:49 BST, 27 September 2018 | Updated: 22:49 BST, 27 September 2018

The Sydney housing market is showing no signs of heating up any time soon, with experts predicting prices will continue to drop until at least 2020.

ANZ bank analysts have blamed a combination of tight credit conditions, low auction selling rates and exploding household debt for the cooling market.

The rest of Australia is also expected to follow the trend, as the national property market is predicted to fall four per cent by the end of this year, and a further two per cent in 2019.

The Sydney housing market is showing no signs of heating up any time soon, with experts predicting prices will continue to drop until at least 2020

ANZ bank analysts have blamed a combination of tight credit conditions, low auction selling rates and exploding household debt for the cooling market

Economists Daniel Gradwell and Joanne Masters said Sydney and Melbourne will experience the biggest drops in house prices.

‘We anticipate price declines of around 10 per cent peak to trough in these two cities, on the back of tighter credit and rising interest rates,’ they told the Daily Telegraph.

According to CoreLogic data, house prices in Sydney have dropped every month since reaching a high in August 2017.

The median property price in the harbour city has decreased by 5.6 per cent since then.

An average house in Sydney cost $855,287 in August this year, with that median dropping another 0.5 per cent into September.