Market spotlight: Will you get a better property deal next year?
Since our July market spotlight, Sydney property prices have continued to stall and the market has flattened out. Many are tipping even better buying conditions in 2018. Yet some experts say you could be very disappointed if you leave your purchase decision until next year. I’m inclined to agree.
Current Market Conditions
There are several reasons why we’ve seen Sydney’s property prices stall. Governmental and regulatory restrictions upon overseas buyers and investors have definitely had an impact. Domain Group chief economist Andrew Wilson points to “lacklustre auction clearance rates and a crackdown on investors from the banking regulator, the Australian Prudential Regulation Authority.”
The regulator’s decision came sooner than we expected, restricting growth.
“The market has flattened. It’s the ending of the boom,” Dr Wilson said.
“Chances are we won’t see prices grow again this year at least – the inner suburbs were holding the market up, but we’re now seeing signs of them easing as well.”
Buying conditions are definitely more favourable to purchasers than they were earlier in the year. Will this last?
Still Poised for future growth
Interestingly, the Sydney market is still tipped to grow by up to 8 percent next year. That’s the prediction made by SQM Research managing director Louis Christopher in the Housing Boom and Bust Report 2017.
He expects we’ll see a repeat of market activity in the second half of 2015, when prices declined before rising again in 2016 – with $100,000 in house price growth since.
“It’ll be slow [for the first half of 2018] and will pick up in the second half,” Mr Christopher said.
Get a great deal in December
Of course, the question is whether you should buy now – or wait to until next year.
Take heart that some of the best deals I’ve ever done have been in December. Buyers tend to thin out, distracted by Christmas shopping and the holidays. At the same time, motivated vendors start to panic about reaching a sale before the end of the year – with the fear of not selling before February.
Even if the worst happens and interest rates rise while prices tumble, how much will you really lose given that prices will most likely fall across the board? This means you’d be unlikely to lose any value, relative to the declining values of other properties.
On the other hand, if you leave your search for 12 months and prices rise another 8%, how much more money will you end up paying?
Need help deciding if now is the right time to buy? Consider speaking with a buyer’s agent. With a finger on the market pulse, they’ll help you save time and money – and find your perfect property sooner, at the right price.
To see how a buyer’s agent can make your Sydney property dreams a reality,
call Nick Viner today on 0405 134 645.