Sydney median house prices plunge by 7.6 per cent in one year to $976,365, Core Logic data showed

House prices have plummeted by close to 8 per cent in the Australia’s largest city, but an expert says homeowners have nothing to fear.

Sydney’s median house price fell to $976,365 in September, the lowest level since 2015 and the third straight month they have been below the $1million mark, real estate data group Core Logic has revealed.

Detached property values plunged by 7.6 per cent in just one year, after peaking in mid-2017.

Melbourne also fared badly. Median house prices within Victoria’s capital fell by an annual pace of 4.5 per cent to $799,657, after hitting a peak in November last year.

Australian house prices have plummeted by close to 8 per cent in one city-  but an expert says home owners have nothing to fear

Sydney's median house price fell to $976,365 in September, the lowest level since 2015, real estate data group Core Logic has revealed. Pictured is Manly on Sydney's northern beaches

Sydney’s median house price fell to $976,365 in September, the lowest level since 2015, real estate data group Core Logic has revealed. Pictured is Manly on Sydney’s northern beaches

The declines in both cities, each home to more than five million people, dragged down the overall national market, causing median house prices across all capital cities to slide by 3.1 per cent in the year to September 30.

Together, Sydney and Melbourne comprise 60 per cent of Australia’s housing values.

When house and unit prices were analysed together, real estate values across Australia plummeted by 2.7 per cent in one year, with Sydney declining by an even steeper pace of 6.1 per cent and Melbourne falling by 3.4 per cent. 

The story wasn't much better in Melbourne (Port Melbourne pictured), where median house prices fell by an annual pace of 4.5 per cent to $799,657, after peaking in November last year

The story wasn’t much better in Melbourne (Port Melbourne pictured), where median house prices fell by an annual pace of 4.5 per cent to $799,657, after peaking in November last year

Australian house rules

Sydney, down 7.6%to $976,365

Melbourne, down 4.5% to $799,657

Brisbane, up 0.8% to $539,374

Adelaide, up 0.6% to $466,636

Perth, down 2% to $475,774

Hobart, up 9.4% to $464,515

Darwin, up 2.3% to $505,414

Canberra, up 3.1% to $686,582

Source: Core Logic home value index in the year to September 30 based on detached house prices 

Despite the bad news, Core Logic’s head of research Tim Lawless said the drop in real estate prices, after six years of strong growth, was less severe than the aftermath of the global financial crisis.

‘Hardly a crash, and a slower rate of decline relative to the previous housing market downturn – June 2010 to February 2012 – when national dwelling values fell by 3 per cent over the first twelve months, declining 6.5 per cent from peak to trough,’ he said. 

Hobart continued to buck the national trend, with house prices rising by 9.4 per cent annually.

The pace of growth in Brisbane, however, has slowed to a year-on-year rate of just 0.8 per cent, a dramatic drop from 2.9 per cent a year ago.

Darwin was the worst performing market when it came to apartments, with values sliding by an annual rate of 15 per cent. 

The pace of growth in Brisbane has slowed to a year-on-year rate of just 0.8 per cent, a dramatic drop from 2.9 per cent a year ago 

The pace of growth in Brisbane has slowed to a year-on-year rate of just 0.8 per cent, a dramatic drop from 2.9 per cent a year ago 

House prices in the Northern Territory capital however were holding up, rising by 2.3 per cent over the year

Perth’s apartment market also fared badly, with median unit values falling by 6.1 per cent during the same period, compared with Sydney’s 2.6 per cent. 

Across the capital cities, median house prices were $683,437, compared with $564,290 for units.

Hobart continued to buck the national trend, with house prices rising by 9.4 per cent annually. Pictured is a house at Taroona, in the southern suburbs of the Tasmanian capital 

Hobart continued to buck the national trend, with house prices rising by 9.4 per cent annually. Pictured is a house at Taroona, in the southern suburbs of the Tasmanian capital 

Read more at DailyMail.co.uk