Following eye-popping house price growth across both Sydney and Melbourne of 56% and 33% respectively,
it may come as a relief to many buyers that a recent QBE report suggested a 5% drop in Sydney house prices alone between 2017 and 2018.
The surging prices of late have driven a massive increase in supply, with new building approvals peaking in April 2015 at almost 10,000 in Sydney alone.
This increase in supply is likely to relieve some of the pressure on buyers, making for greater choice and potentially improved pricing conditions.
This, coupled with recent – and potentially ongoing – increases in lending rates has many experts forecasting an opportunity for buyers in the coming months.
Most recently CBA, Westpac and NAB announced rate hikes for investors up to as much as 65 basis points in some cases, with forecasts for a sustained upward trend over the 2017/2018 period.
How should I prepare?
- For starters, buyers should begin to assess value in the context of softening capital growth. Resist the habit of forecasting an upward trend in values.
- Look back beyond the standard 1-2 months when assessing comparable sales prices. Include data from the previous 6 months.
- Have your finance in place to capitalise.
- Talk to an experienced buyer’s agent about how to achieve the optimal result.
With 25 years’ experience in the Sydney buying market, our team are experts of the highest order.
we would be very pleased to spend some time with you, to understand your requirements and offer you valuable insights into achieving your real estate objectives.