It’s undeniable that Sydney’s property market is changing, but the softer market isn’t the bad news some expect. There are genuine benefits for both sellers and buyers in a changing market. Let’s take a look at the upside of a changing property market.
What’s happening in the upper north shore property market?
After six years of surging prices, 2018 has brought long-anticipated price drops across the country, with Sydney’s overall median house price down 6.5%. This is also the case in Ku-ring-gai. Lower prices have been coupled with fewer properties up for sale, fewer buyers attending inspections and longer days spent on the market.
That said, the upper north shore is a blue chip area, home to plenty of premium properties that are less influenced by general market trends, so many vendors are still getting great sales figures for these lovely homes.
Positives of a changing property market for sellers
Falling prices often cause concern for vendors who are worried about the impact on their own home’s sale price. But instead, when sellers focus on their next purchase, it becomes clear that there’s less to worry about. When you sell in a certain property market, and also then buy in the same market, your next home is likely to have experienced a similar price drop. This is even more positive for buyers who are considering upsizing their home, as there’s less of a leap between the cost of the current and future properties.
In many cases, current property prices are now about the same as they were in 2016, so sellers who purchased their home more than two or three years ago will still get more for their home than they originally paid.
Positives of a changing property market for buyers
The current property market has obvious benefits for buyers, as there are suddenly many excellent properties available at a slightly lower price, as well as continued low interest rates. But it’s not just about price – buyers are now facing less intense competition, so they can take their time finding the perfect home.
Timing the market right is a consideration for many hopeful buyers, with some planning on waiting until the lowest prices are reached. A market like this is near impossible to predict, so we’d encourage buyers to focus on finding the right home for their budget instead of waiting for market changes that may not come.
Positives of a changing property market for new homeowners
Those who have just moved in to a newly purchased home are sometimes worried that their home is suddenly worth less than they paid for it, but this is quite a rare problem. We believe the current dip in the market will only be temporary. Sydney’s property market history shows that prices will increase again before too long, and buyers who are planning on living in their home for several years probably won’t be negatively affected by current price drops. Of course, there are many buyers planning on owning their home for much longer, so short-term changes in the market will have little or no effect over time.
Unsure how the current property market affects you?
Whether you’re a buyer or seller, get in touch today for advice on your property needs.