Theresa Worrell: Sydney Housing Market Update [video]

Since finding a floor in May last year, Sydney dwelling values have recovered by 11.2%, but they remain 5.4% below their 2017 peak.

The premium end of Sydney`s housing market continues to be the main driver of higher values, with the top quartile of the market up 6.9% over the past three months and 10% higher over the year, while values across the lower quartile were 3.2% higher over the rolling quarter and are only 3.4% higher over the past year.

With housing values rising so rapidly, affordability constraints are once again becoming pressing in the market.

The median house value isn`t far off one million dollars and the median unit value has reached $750,000.

As affordability worsens we expect the pace of value growth to slow and demand to trickle down to more affordable areas of the market.