Prolonged stagnation in the Sydney property market could result in the median house price taking a nosedive between now and 2009, research has found.
Forecasts in the PMI Residential Property Overview predict that the median house price in Sydney by 2009 will be $504,000 - $14,000 lower than the average price of $519,000 recorded in 2003
It is the only property market in Australia where this will happen although all other state markets will slow down until 2009 at the earliest.
In 2004 Sydney house prices peaked, reaching a record high of $552,000, but since then prices have embarked on a downward spiral, largely a function of worsening affordability.
House prices in Sydney had appreciated too rapidly, said Suzanna Asciak, managing director of non-bank lender ASMM, adding that she expected them to "stabilise for a while. This will have a big impact on brokers in Sydney. Some may move to Melbourne and Brisbane to generate more business," she said.
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