Sydney’s property market, everyone’s favourite subject, is back in the headlines. Did it ever go away?! So what is the current situation?
As we have said many times before, it is impossible to treat the whole of Sydney as one housing market. Different locations, price brackets and types of property behave differently. However, in the Eastern Suburbs we are seeing:
Buyers who have been sat out of the market for the last year waiting for prices to fall are in a tricky situation. On the plus side, there are increased levels of stock starting to come through, and funding is cheap and easier to secure.
On the negative side, the market is on the move. In the Easters suburbs we are seeing buyers in increasing numbers, more registered bidders at auction and more competition for properties.
Some interesting quotes from RP Data and Domain this week:
“The annual rate of decline in housing values has moved through a trough as housing market conditions improve.
“Our estimate of settled sales is down -14.1% year on year nationally, with sales volumes lower year on year across all capital cities and rest of state regions.”
The volume of stock for sale remains lower than it was a year ago with new stock being listed for sale almost 20% lower nationally.”[1]
“Sydney’s property market has recorded its quickest turnaround in decades, with house prices rebounding almost $50,000 last quarter, new data shows.”[2]
These above quotes are what we, at Rose and Jones, are seeing in the market currently.
The question is – how long will these conditions last? Global economic factors and political uncertainty, coupled with domestic policies will effect the property market. Our interest rates are at record lows for a reason. However, the market does have momentum and we see this continuing for the rest of the year.
Now is a great time to purchase property whilst money is cheap – provided you have undertaken the sufficient due diligence and have derived an accurate opinion the value of a property in the marketplace. There are a lot of quietly listed properties available off market and, in a rising market, purchasing with the absence of competition can result in a good result for the buyer. With the year coming to a close, a high volume of vendors will choose to list and sell their property in the first quarter of 2020, however, a portion of these are available in a pre-market capacity today.
Please feel free to call me if you would like to discuss your property requirements.
[1] Rp data – Monthly housing and economic chart pack, October 2019
[2] Domain, 24 October 2019