As the new decade begins, we are looking forward to meeting new clients and working with our existing ones. As always, people are curious about market trends and what’s going to happen in Sydney real estate this year.
One thing is for certain, the Sydney property market is never boring. Having said that, the coming year looks to be a bit less volatile than the past few. This is thanks to lower interest rates and a more ‘normal’ market. Here are some things we expect to see this year.
A gradual rise in stock levels
At present, stock levels are still quite low for Sydney. This market trends may be a post Christmas lull, or it may be that people are still waiting for the market to lift more before putting their property on the market.
What this does mean is that there are eager buyers out there looking for the right property who haven’t yet found it. That is great news for sellers. If you are thinking of selling your Sydney property this year, act now while supply is still low. We can see demand starting to build as 2020 gains momentum. Read our post on timing your Sydney apartment sale for more insight on choosing your moment.
Low stock levels at present also mean sellers can look forward to a shorter property campaign and less time on the market. This is because buyers snap up a property faster when there are fewer to choose from.
Low interest rates will impact market trends
There’s talk of another interest rate cut mid-year, but as it is, they can’t sink much lower. This is good news for borrowers as you can lock in a great rate now and know that your repayments will remain unchanged.
This also means that property prices should remain steady. So if you are looking to buy, now is a good time to take the leap. For sellers, it means that there are more buyers – particularly first time buyers – out there looking for their dream property.
Population growth will ease off
Sydney’s population shot up by 15.8% between 2010 and 2018, putting pressure on housing and infrastructure. However, this is predicted to ease off a little going forward, with more people choosing to live in regional rather than city centres.
There will always be a strong demand for inner-city Sydney properties, however. This is because more and more people choose to live close to their places of work and within easy reach of public transport for convenience and lifestyle. So we don’t anticipate slowing property growth to have any impact on prices in inner Sydney.
Auction clearance rates are improving
Auction clearance rates in Sydney are on their way up again, showing increased market confidence and growing buyer demand. This means that more sellers will return to the market after staying away during the downturn. So if you are looking to get your property sold under the hammer, it’s a good idea to get it listed sooner rather than later.
Prices are on their way up again
Sydney property prices increased by 5% in the last three months of 2019, and look to be heading up again according to some pundits.
Again, this is partly due to low stock levels. Whatever is happening in the wider economy, people still need a place to live, and Sydney is always appealing. The low stock levels are currently driving prices, which is great news for sellers.
Talk to us
If you’re thinking about selling your Sydney property this year and would like to have a no-obligation chat about current market trends, feel free to give us a call. And don’t forget to download our brochure on achieving a fast sale in 2020.