Sydney's recent housing boom is officially over following another month of declining property prices in October, experts have ruled.
New data from CoreLogic shows that even in what is traditionally one of the country's best-performing cities, Sydney, average house prices fell by 0.5 per cent over the last four weeks, dragging the nation down as a whole.
This means that during the last three months, property prices in Sydney have dropped by 0.6 per cent overall marking the largest decrease recorded since May 2016, signalling that recent consistent growth has finally come to an end.
Just last month, it was reported that house prices throughout Australia have risen by a huge 6,556 per cent over the past 55 years. Indeed, since the turn of the millennium alone, house prices across the country have more than doubled. But this period of strong and steady increases looks to be over for the time being.
As a result, this creates a somewhat uncertain situation for property investors. On the one hand, investors may want to purchase properties while prices are low in the hope of another boom in the near future, but on the other, some may prefer to hold off and invest their money elsewhere until house prices begin to pick up again.
Economists at UBS released a statement commenting on the current situation, led by George Tharenou.
He said: "There is now a persistent and sharp slowdown unfolding. This suggests a tightening of financial conditions is unfolding, which we expect to weigh on consumption growth via a fading household-wealth effect."
Although house price growth across Australia last month was dragged down by the Sydney market's performance, slight increases were recorded elsewhere down under, CoreLogic data shows.
Hobart was the area that performed most strongly, with average property prices increasing by 0.9 per cent in October, followed by Melbourne (0.5 per cent) and Brisbane (0.2 per cent).