Sydney house prices still 20% above pre-pandemic levels despite rising interest rates

Sydney house prices have dropped -1.5%, but remain 22.7% above pre-2020 levels, according to CoreLogic data. Digital Finance Analytics’s Martin North says Australian homes are overvalued by about 40%. Photograph: Brendon Thorne/Getty Images

House prices in Sydney remain more than 20% above pre-Covid levels despite rising interest rates, as economists warn housing affordability has “never been worse”.

After hitting record highs in January, Sydney house prices have dropped -1.5%, but remain 22.7% above pre-2020 levels, according to CoreLogic data.