With Sydney property prices rising again, many owners are asking if now is the time to sell?
Here, we take a look at the current market conditions in Sydney’s inner city and factors you should consider if you’re looking to list.
Property prices are on the rise
After a disappointing start to 2019, the Sydney property market began to see positive growth in prices during the last quarter of the year. This strong rebound has continued into 2020. CoreLogic’s National Home Value Index for January 2020 was up by 0.9%, taking the annual growth rate to 4.1%, which represents the fastest pace of growth for a twelve-month period since December 2017. In Sydney, house prices rose 1.1% in January – up 5.6% over the quarter.
For example, according to realestate.com.au, houses in Alexandria had a median price of $1,360,000 in March 2019, but this had risen to $1,485,000 as of February 2020.
Expert predictions for 2020
Domain’s Property Price Forecast for February 2020 predicts that Sydney house prices will rise rapidly in 2020 – by as much as 10% – before starting to moderate in 2021, for which it forecasts annual price growth of 6-8%. Unit prices in Sydney are predicted to rise 8% in 2020 and 3-5% in 2021.
AMP Capital’s senior economist Diana Mousina recently told ABC News that she believes the bounce will continue, at least in the short term. She predicts that both Sydney and Melbourne’s property prices will reach record highs within the next few months before slowing again mid-year due to higher household debt-to-income ratios (currently at record highs), tighter banking lending standards, more unit supply, and an overall weaker economy.
She isn’t the only one. Tim Lawless, CoreLogic’s Head of Research, has also said he expects the trend in price growth to weaken later this year, as more property owners take advantage of the rising market to sell.
What’s driving price growth?
A number of factors are driving price growth, including the consecutive interest rate cuts by the RBA, along with the expectation that interest rates will remain low for some time to come. The First Home Loan Deposit Scheme is also expected to contribute to rising prices, as more first-time buyers enter the market.
A seller’s market
Domain recently reported that it will be a seller’s market for some time to come with stronger buyer demand and low levels of listings. Figures from SQM Research show a 24.8% slump in listings in February 2020, as compared to the same time last year, with SQM Research managing director Louis Christopher saying it would take thousands of new listings to level the market.
Autumn selling season
Autumn can be a great time to sell, with people having settled back into daily life after the holidays and clarified their goals for the year. The weather is still favourable for presenting houses at their best, but there can be less competition in the market than in the spring and summer selling seasons. Buyers who are looking tend to be serious, and are ready to commit.
Get professional advice
If you’re considering selling your house or unit now, the first thing to do is to get advice from real estate professionals who know your specific market well. Get advice about where the market is at right now and how best to position your property. A good agent will know what comparable properties have sold for very recently in your area. With the recent upheaval in the market, it’s important to remember that data from even three months ago may already be out of date.
Looking to sell your property in Sydney’s inner-city?
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