There has been a major correction in Sydney property prices in recent months, which has been a long time coming, and it is likely to continue. Many buyers are saying it’s about time, while vendors are concerned what impact this will have on future sales. What does this all mean for buyers and how can they use it to their advantage?
With a federal election announced, many are worried about a rise in interest rates. Buy into a market that is becoming a lot more affordable rather than buy into election campaign scare tactics. This is definitely the way to go. Analysts are saying that a Reserve Bank rate increase will be in accordance with economic growth, no matter who is in government.
As selling prices continue to soften, the checklist for buyers is more relevant than it ever was before. There is great potential at the moment for buyers to secure a property without over-capitalising. Importantly, there is a possibility that prices may rise in certain areas, if sales increase. On the other hand they may continue to adjust, meaning a further reduction in market values.
Buying now will depend entirely on your budget and where you’re looking. The price restructure is across the board. This creates a domino effect in the marketplace. So, still expect to pay around two million dollars plus for some properties in Woollahra or Paddington. Although prices have softened all over Sydney, you may end up spending more than you should. It’s imperative to do your homework and look at comparable sales. This applies as much to the eastern suburbs market as anywhere else. However, if your budget doesn’t stretch that far, you may be looking in areas such as Darlinghurst or Newtown.
You can now buy in an area that was previously out of your reach. One example is Annandale. From June to December last year the median auction price in Annandale was $785,000. Currently it is at $667,000. This is a remarkable adjustment. Traditionally seen as the higher end of the inner west market, Annandale is now a lot more affordable. Reasonably priced properties in the inner west are plentiful in areas such as Marrickville, Stanmore and Leichhardt, to name a few.
On the other side of town, people are using first homebuyer’s incentives in the Surry Hills market, which a year ago was almost unheard of. Whether it’s a property in the inner west or the eastern suburbs, the potential to secure a good buy could be right now, if you do your homework.
Take advantage of the softer prices. Vendors who haven’t already met the market and made the necessary adjustments eventually will. Those who are clinging onto last year’s prices in the hope the market will pick up will have no other choice but to make the necessary amendments sooner than they realise.
Now is a great time for those wishing to upgrade and you don’t have to move from the area in which you now live. You can sell your current property and secure something better in the same suburb. You have the potential to buy something larger without going over budget.
Glenn Regan, senior property consultant of Raine & Horne Newtown, says, It’s all about those who wish to upgrade. Some people are selling in Newtown to buy in the same area whereas other people want to eliminate their current mortgage and buy in suburbs like Marrickville. With Newtown properties generally having larger price tags, moving to areas like Marrickville is a great opportunity for those who wish to clear their debt. Current trends in medium-sized houses and units are allowing people to do exactly that.
Who would have thought that moving to Marrickville could be considered an upgrade? It goes to show that stigmas associated with where you live are slowly deteriorating. This is being driven purely by the affordability of properties across the Sydney region. You can now afford to buy in Surry Hills, Marrickville, Annandale or Newtown and still drive a BMW. Your car can remain a status symbol, but your street address is becoming much less of an issue. So the big question on every buyer’s lips is buy now or wait to see what happens. Whatever your situation, now is the time to start searching as you may find that bargain you’ve been looking for.