What You Need to Know about the Sydney Property Market Recovery
The rebound of the Sydney property market is underway, with property prices having recently increased by an average of 1.7%. Prior to the recovery, quarterly growth had been on a steady decline since its peak in 2017.
Experts attribute the positive changes to falling interest rates, investment activity, and more accessible credit. However, prices are still down by nearly 12% from 2017 — meaning there’s still a serious journey to get back to where things once were. For home buyers, this means you still have time to buy at lower prices.
An Uptick in Home Sales
The upward trends in Sydney have been seen for the past six months or so, with values and sales moving at roughly the same pace. The head of research at CoreLogic, Tim Lawless, has commented that the fall of prices has largely mimicked similar downturns in 2008 and those seen from 2010 to 2012.
The residential real estate market is being influenced by a number of factors. There has been a lot of political response to the decline in the market, including a change in the cash rate. And even though mortgage rates have already fallen quite some way, they’re expected to go even lower. In fact, there’s every reason to believe that the cash rate will hit 0.5% by the end of the year.
Rise and Fall
This past quarter saw the housing market recover about $50,000 in free standing home values. However, the residential real estate market noted a 0.5% fall overall. The overall drop in residential real estate was largely attributed to attached dwellings.
Housing such as apartments, terraces, and row houses simply aren’t as popular in Sydney. This leaves the city median for housing at just under $1.08 million, according to the Domain’s September House Price Report.
Before the end of 2021, Sydney is expected to see a total of 16.3% surge. Areas like Rouse Hill and Dural could see a jump as high as 23% within the same time period.
What It Means for You
If you’re thinking about buying or selling property, there are a number of benefits for both parties. The relatively slow increase is good news for new home buyers in that they still have time to buy at lower prices. Sellers can take heart that they’re not selling at the nadir of the market. Plus, these gradual improvements give everyone a chance to do their research before jumping into anything.
The lower cash rate, employment growth, consumer price index, and GDP are also headed in the right direction, making economists cautiously optimistic about the immediate future.
If you’re interested in buying a property in Sydney, the experts at Shore Financial can help. Our financial advisors can give you a better idea of whether it’s the right time for you to acquire a property.
Disclaimer: This is general information only and should not be taken as financial advice. Please speak to a Shore financial planning professional before making a decision on your home loan.