“Spoilt” vendors have been forced to eat humble pie in the inner city Sydney suburbs of Redfern and Darlinghurst as asking prices continue to fall.
Asking and sold prices have come down by up to 18 per cent in the two suburbs in the last two months to match cautious and reticent buyers, agents say.
But while prices are lower, homes were still sold either higher than or right on valuation.
The market has room for these corrections because Sydney prices have risen about 80 per cent since the start of the boom, which commenced in 2012 and only just flattened over the past two months, as macroprudential controls on property investments kick into gear.
“What we are probably seeing is that homeowners are having difficulty understanding that market hasn’t continued to rise,” agency BresicWhitney chief executive Shannan Whitney said.
“They are stuck in cold water and are now trying to get into a different temperature. It’s difficult for people to crystallise what’s happening in the market.”
Plenty more to come as the apartment market tumbles.