The new year will bring further change to our big markets – none more so than Sydney. People are no longer asking “when will the boom be over” as it’s very clear the Sydney market is cooling. The most common question now is “how far will prices fall”?
My suggestion is to remove that question from your psyche. Prices will do what they always do at this stage in the cycle – they’ll be up some months, down in others and overall we’ll be looking at a fairly flat year for growth and that’s exactly what Australia’s biggest marketplace needs.
For those of you who like numbers, the final stats for 2017 are in. Over the year, Sydney house prices grew by 2.1% and apartment prices rose by 5.4%, according to CoreLogic. That’s a big change from 2016 when house prices rose 16.7% and apartments 9.6%.
No two ways about it – Sydney is cooling. But after a 75% growth in property values, should you really be worrying about whether prices in your area fall (or rise) a few percent this year? There will be no crash – that’s for sure. Sydney has too many strong fundamentals keeping a floor under the market, such as undersupply and population growth.
I’d advise home owners to direct their attention elsewhere. Forget about what prices are doing and the tiny changes month to month that create those gloomy headlines when markets begin to cool. Look for the opportunity in today’s market. Here’s how I see it:
Whatever your real estate goals this year, I wish you all the very best. Remember, the market presents opportunities in times of both rising prices and falling (or stagnant) prices. You just need to figure out how the market climate in 2018 could help you get ahead.
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