Despite slower results over the past month, the Sydney market still has room to move, a property analyst has predicted.
Louis Christopher from SQM Research said some recent indicators suggest the Sydney market may be easing.
“Auction clearance rates after revisions are now in the low 70s. In the March quarter they were in the 80s for what was a record opening to the year,” he said.
“Meanwhile asking prices for houses have paused since the highs of December.”
Sydney also saw the greatest fall in listings of any capital city in April, according to SQM data.
Stock levels declined by 6.1 per cent in the month.
However, Mr Christopher believes the market is facing a lull rather than the end of its growth cycle.
“I for one am not convinced yet that the boom is over in Sydney,” he said.
In his view, few markets are likely to deliver six per cent-plus growth in every quarter, and to expect that in Sydney is “laughable”.
He predicted Sydney would continue to grow by a substantial margin over the coming year.
“So far, each and every source I have on the ground in Sydney is telling me demand is still running hard,” he said.
“We are sticking with our 15 to 20 per cent call on Sydney.”