Sydney’s median house price fell below $1 million at the end of November and experts believe the numbers will continue to fall.
House prices continued to drop for the third month in a row, after the market peaked in July.
CoreLogic’s monthly Home Value Index revealed an average Sydney home now costs $904,041 – a 0.7 per cent drop since October.
Sydney was also the only capital city to experience a drop in value over a three-month period.
CoreLogic’s monthly Home Value Index (pictured) was released on Thursday
While that drop has the potential to affect growth trends nationwide, housing value in Melbourne and Canberra continues to rise.
House prices in Melbourne rose 0.5 per cent in November, taking the median price to $718,325.
The annual change in home value rose to 10.1 per cent, double that of Sydney which remains at 5.0 per cent.
CoreLogic’s head of research Tim Lawless believes Perth’s housing market may have bottomed out, marking the start of a ‘recovery phase’.
![Sydney was also the only capital city to experience a drop in value over a three-month period](https://i.dailymail.co.uk/i/pix/2017/12/02/03/46E4A9DC00000578-5138409-Sydney_was_also_the_only_capital_city_to_experience_a_drop_in_va-a-51_1512184014318.jpg)
Sydney was also the only capital city to experience a drop in value over a three-month period
‘If this is indeed the start of a recovery phase in the Perth housing market, it comes after dwelling values have fallen 10.8% since peaking in mid-2014,’ he said in a statement.
Overall, the data revealed the housing values remained steady throughout November.
Outside of the major cities, house prices were either steady or experienced a subtle rise over the month.
![The average median house price in Sydney currently sits at $904,041 - a 0.7 per cent drop since October](https://i.dailymail.co.uk/i/pix/2017/12/02/03/46E4A9D800000578-5138409-The_average_median_house_price_in_Sydney_currently_sits_at_904_0-a-52_1512184014378.jpg)
The average median house price in Sydney currently sits at $904,041 – a 0.7 per cent drop since October
Analyst Cameron Kusher said Sydney’s house prices would continue falling in the coming months, but believes a major market collapse is unlikely.
‘Values have been running up for a long time and, now they’ve peaked, we’re seeing a slow decline,’ he told RealEstate.com
‘There has been a huge pull back from investors and there’s a heightened level of properties for sale, the highest number we’ve seen since 2012, and that’s made a huge difference,’ Mr Kusher said.
Despite the slow decline, a median house price of just less than $1 million remains out of reach for many wanting to live in Sydney.