Now is the time to buy property in Sydney
For the first time since June 2012, house prices in Sydney experienced a quarterly fall through the end of December 2015.
That's not to say that the property market for the whole year decreased: the median house price overall grew by 14.8 per cent to $1,013,258 and units increased by 8.7 per cent to $655,845.
With the decline coming at the end of last year, now is an opportune time to break into the Sydney property market and take advantage of the lowered house prices, even if they are only temporarily in decline. Finding help from a Sydney buyer's agent is a sure way to be successful when purchasing the patch of your choice.
Sail into the Harbour City
The housing market in Sydney looks as if it will begin its long-awaited decline, however it is not believed to last long.
"The remarkable Sydney boom we've seen over the last three years is now clearly over, with the market unlikely to record any notable house prices growth until at least spring," said Dr Andrew Wilson, the Domain senior economist.
Melbourne, on the other hand, continues to have its price driven up by high demand. Where Sydney prices are looking likely to become more affordable for a short time, Melbourne is still growing and prices are rising.
"It's good news for Melbourne home owners, with the city recording its highest annual growth since 2009," said Dr Wilson.
Melbourne house prices increased similarly to Sydney's with a 14.5 per cent rise. Both capital cities were well above the national average of 10.2 per cent. However with the continued Australia-wide growth so high, there is a perception that the increases will slow considerably.
"The housing boom, which had been the first stage of the rebalancing act, appears to be cooling," said Paul Bloxham, the chief economist at HSBC.
What's more, the number of properties in the Sydney area that are being developed is also heightening dramatically. BIS Shrapnel data indicates that the number of property completions in 2011-12 was 8,400, but that rose to a staggering 33,400 in 2014-15.
Now is a great time to make a move into the Sydney property market.
Even with the enormous increase in the number of dwellings, the vacancy rate around inner and middle-Sydney residences sits below 2 per cent, as stated in a BIS Shrapnel report, only periodically rising above that figure. The strength of the Sydney economy is a major factor in the continued successes of investment properties in the city, and with lower prices being witnessed right now, it is as good a time as any to make a move into the Sydney property market.
Making the process a breeze
Earlier in February 2016, the Sydney auction market was out in full force. SPI reported that there were 124 sales at auction of Sydney properties in the first weekend of the month, and that number was the highest around the country, even though it was 48.1 per cent lower than the same weekend in 2015.
The median house sale price rose 6.7 per cent to a number higher than the combined city-wide average: $1,080,500. Even with the drop in the market at the end of last year, the median at auction is still higher than the average figure from all over the New South Wales capital. When statistics such as that appear, it can scare people off attending an auction and purchasing a property.
Data from a survey carried out by St George Bank found that 62.1 per cent of people at auction did not have a strategy in place when bidding. Further, when emotions become involved at auction, it can often throw all previous valuations of a property out the window, and the money you intended to spend is forgotten and you fork out more than you needed to. Getting help from a professional buyer's agent can remove any stresses you might have regarding purchasing at auction.
Specific knowledge of the area you are looking at buying in can be helpful, but an agent can take into account all of your specifications for a property, your price ceiling and all of the factors in an auction room that could potentially drive the price up. Buyer's agents have strong strategies and knowledge of how others may bid, which can be invaluable in the long run, and could shave thousands off the valuation assigned to a residence.
Buying in Sydney could be a very sound financial move while the market has moved down for the first time in almost four years. Sydney's economy is priming for further growth, and so the demand for housing in the city will continue to rise. With low vacancy rates, buying an investment property is sure to provide an increase in value to your portfolio, and your returns will be consistent.
A property agent from Cohen Handler can put you in the driver's seat to win at auction in Sydney, and they can provide informed advice about which properties to chase, and which to leave alone. Contact the team today and see how they can help.