Winter Property Market Update
There has been alot of doubt and uncertainty in the last month among buyers and property investors we have spoken with, whether it’s the right time to get into the market. The Sydney housing market has proven to be very unpredictable lately, although clearance rates have been consistently high, around 70% nationally – still very strong. Supply is generally low with demand being very strong.
The $500,000 to $1.5M market is the strongest price range. The prestige market remains stagnant with most activity under $3M at the moment. There has been a few exceptional sales above $5M but supply and activity is generally low. For the buyers that have been reluctant to buy, we see the next 4-5 months will present some excellent opportunities to capitalise and get value.
We see the housing markets softening in the coming months. By this we mean price growth will start to slow, it doesn’t mean prices will start to fall, however, they may in some areas. If interest rates rise again too soon, this may really impact the bottom end of the market. It is likely the market will slowly fall back into neutral in contrast to a rapid sharp fall as some people are predicting.
Winter generally presents buyers with new opportunities as demand can soften and extended days on market can get longer. We see that in Spring 2010 there will be an increase in buyer confidence and significant increase of the supply of properties, with the best properties hitting the market.
CohenHandler are buyers agents act exclusively for people seeking to buy property in Sydney.