Sydney Property Market Update 01/06/2019
Get ready because I'm about to state one of the most over used phrases in the history of real estate.
Are you ready?
There's never been a better time to buy than right now!
There, I said it. And yes, I genuinely believe it to be true. When you look at all the fundamentals behind the decision to purchase, I can see very little that will make for better buying conditions than right now.
We have been in the midst of a correction of property prices that hasn't been this long or pronounced since the recession of the early 1990s.
One big difference though, in those days both unemployment and interest rates were double digits. Today, each hovers just above or below half that level.
Admittedly the average buyer borrows significantly more money today and we are coming off a much higher base with prices booming uninterrupted for almost a decade from the beginning of the Global Financial Crisis (GFC) of 2008. But we are now in a situation where the sales being recorded for most properties are at the equivalent price point of those from as far back as late 2015 to early 2016.
For example, I recently relisted a property where the owner originally wanted to sell in Springtime 2015 but ultimately postponed it. When I returned to their home last month with a new agency agreement, I looked at the initial one we had signed just under four years ago and noticed the estimated selling price range was almost identical.
It's very easy as a buyer to think that things will continue to stay as they are or in many cases get even better. I've spoken to countless buyers over the past eighteen months who are very worried about "paying too much" and "the market continuing to go down".
All I can say is that when it comes to Sydney real estate, corrections are ALWAYS much shorter than booms or flat spells where prices lay stagnant. If you don't believe me go and look at any graph you care to find over the past 30 plus years whether it be prices, interest rates, unemployment, inflation, etc.
EVERY one of those fundamental indicators points to this being the most opportune time to take the plunge. This particularly rings true if your intention is to hold the property for at least seven to ten years.
So, my advice is to forget worrying about what is going to happen next and get moving with your life.
The number of buyers I've met recently who have been looking for over a year is the highest I've seen for a long time. The only difference is they are all now able to purchase something for less than what they had to pay when they first started looking.
That is an extremely rare opportunity to have. Just ask any current owner who bought their place between 2005 to 2016 if they had the same chance. It is not logical to assume this situation will hold for much longer.
Well, that's my call to arms done!
0412 465 567