If you’re considering buying a home in Sydney, now could be the perfect time to take the leap.
At Prudential, we’re seeing several indicators that the Sydney market is beginning to turn. And here’s why…
Are prices stabilising?
The Home Price Index by PropTrack shows that home prices in Sydney increased in March for the third consecutive month. This is following nine months of decline. Additionally, auction clearance rates are at their highest level in a year, reaching 74% over the weekend. This is good news for buyers, as it can indicate a more stable, balanced market and a more favourable period for purchases.
There’s more choice
CoreLogic’s sales volumes trended slightly higher through March to an estimate of 44,124 in the month. This suggests that there are more properties available on the market, giving you more options to choose from. At Prudential, our offices are reporting an uptick in listings coming onto the market and more people attending open homes across our offices in Campbelltown, Liverpool, Macquarie Fields, and Narellan.
Furthermore, we may see even more people list their homes in the next six months as they come off a fixed mortgage and suddenly find themselves facing much higher interest rates. According to RBA data, 40% of fixed-rate loans outstanding in early 2022 will expire by the end of 2023. That’s a lot of people who may not be able to absorb the increase in interest rates.
The end of rate hikes?
Speaking of interest rate hikes, The Reserve Bank of Australia’s (RBA) pause in interest rate increases in April is another positive sign. This may indicate the RBA has come to, or near the end, of its escalation of interest rates. But don’t just take it from us, with the Westpac Melbourne Institute Index of Consumer Sentiment survey for April indicating a spectacular 9.4% rise to 85.8. Furthermore, the confidence of respondents with a mortgage increased by 12.2%. And when consumer confidence is high, people are more likely to spend more and make big purchases, such as buying a home.
Winter is coming
As we head into winter, which is traditionally a slower time for the housing market, we are likely to see fewer buyers in the market. This makes it an excellent time to buy, as you might get a better deal than you would during the busier seasons.
Prices may outpace savings
If you’re still not convinced, consider this: now may be your chance to get a better price than you could save. For example, say prices go up by 1% in the space of a month on a million-dollar home, that’s a $10,000 price increase, which is more than most people can save in the same month.
The current state of the Sydney housing market presents a unique opportunity for prospective homebuyers to make their move. When you’re ready to take the next step in buying your dream home, it’s important to work with a reputable real estate agent who can help guide you through the process and help you find the home of your dreams at the best possible price. Our offices in Campbelltown, Liverpool, Macquarie Fields, and Narellan are here to help you every step of the way.
Information referred to in this article was obtained from publicly accessible sources including Core Logic, PropTrack, Domain, Westpac and RBA. The information provided in this blog post is for general guidance only and should not be taken as personal advice.
Prudential Real Estate Campbelltown | (02) 4628 0033 | campbelltown@prudential.com.au
Prudential Real Estate Liverpool | (02) 9822 5999 | liverpool@prudential.com.au
Prudential Real Estate Macquarie Fields | (02) 9605 5333 | macquariefields@prudential.com.au
Prudential Real Estate Narellan | (02) 4624 4400 | narellan@prudential.com.au
