Slowing home price growth: Sydney's tentative early 2014 capital city trend
It's premature to suggest the trend is omnipresent, but the latest RP Data update would suggest that there may be an easing in the rapid price growth that Sydney notched up last year.
As at December 31, Sydney's annual growth was marked off at 14.5%.
Just three weeks later it's down to an annualised 13%. And I'd suggest the tractectory is one directional.
(Source: RP Data)
While I was confident about Sydney's 2013 growth prospect, I never expected the 14.5% rate.
And I have to say that I regularly struggled to see that level of growth in many specific sales especially in the cheapest and dearest suburbs.
There was certainly a middle priced suburb fillip.
Anyway I sense Sydney will enjoy moderated growth during 2014.
I'd be suggesting 7% to 8% growth might be the go in 2014.
One initial factor that will impact is an early 2014 run at listing from slow-coach vendors wanting to capitalise on the improved market. But too much supply on offer for remaining buyers will act as a restraint on price growth.
RP Data has already noted a boost in January's fresh new Sydney listings, though still some 26% down on the same time last year.
(Source: RP Data)
Rising unemployment will also be a handbrake on growth.