NSW June 2008

Sydney Houses
The Sydney house market, after a lengthy period of zero or slightly negative growth, finally seems to be showing signs of moving again.  The market is certainly only in the early days of its recovery, but there are enough positive signs to indicate that we have passed the bottom of the slow period, and are moving into a period of renewed market activity.

Number of Sales
Throughout 2008, we have noticed a steady increase in the number of houses sold, with each quarter being higher than the last.  If we count not just the number of sales recorded by the government, but other more recent sales provided by real estate agents, the number of sales in December 2006 was 10,101, the highest number of sales since the end of 2003 when the market correction began.  Certainly, we are not back to boom levels but there is a definite improving trend in this area of the market.

Capital Growth
Another positive sign for the Sydney house market is the capital growth figures, which have been showing a rising trend (the blue line in Figure 1) over the last six months.  It is still low growth, but there is a definite upwards movement in the growth.  Combined with the rising sale count, this is a clear indication that the market in Sydney is starting to move again.
 
Median Value
The median value (the value of a typical house in Sydney) is currently $534,211, which is again showing average growth over the last six months.  The highest median value recorded was $564,000 in March 2004, but this was at the peak of the growth cycle, and the current median value of is now just under the long term trend value we would expect at this point in time.