Property correction underway
No, it’s not what you think. Prices in Sydney and nearby regionals like the Central Coast & Newcastle are not falling, but I do think they are correcting. This present boom in prices I believe is a correction following on from an extended flat period in the market from 2003/4 to 2012. The run-up in prices from 2012 to current day 2017 in my opinion, is the correction we were due to have.
For those holding out hope for a fall in prices before they buy, I’m afraid you could be in for disappointment. With 70% of the market traditionally being owner occupiers, these people don’t sell even if sitting on negative equity. They have different reasons for owing property, namely to provide shelter for their families. Loans from lenders favour this type of property buyer with the many consumer protections that come with it.
Seasoned investors don’t panic sell either. They see booms and busts as a normal part of the real estate cycle and if they hold onto property they do well in the longer term.
Interest rates have never been lower and the state government is attracting First Home Buyers back into the market with Stamp Duty relief. Listing numbers have improved (thankfully) but demand is still exceeding supply which is putting a floor under prices. Auction clearance rates are 70+% still and although the rate of price increase has slowed, prices are still rising. This is just part of a normal real estate cycle.
In summary, I don’t foresee falls in prices anytime soon, so I’d be buying when you can afford to. Feel free to call us for an obligation-free chat.