Sydney’s resurgent property market will boost those looking to upgrade, but the outlook is bleak for first home buyers, according to real estate agents.
- The number of houses for sale this season is down by around 33 per cent compared to last year
- But buyers confidence has returned thanks to easing lending criteria since the Banking Royal Commission
- The auction of one inner west property was moved forward by 10 days due to overwhelming demand
On Monday, CoreLogic’s monthly home value index showed a 1.6 per cent rise in the price of dwellings in Sydney, twice the national average.
Sydney real estate agents said while the number of available properties was thinning, there was no shortage of potential buyers.
Since May, several factors have contributed to property prices rising and a return of confidence for homebuyers and sellers alike.
The Royal Commission into the banking sector concluded, resulting in an easing of lending criteria and expediated pre-approvals for potential first-time home buyers.
Political stability has also played a significant role, particularly on the higher-end of the property market, according to analysts and real estate agents who have reported an upswing in sales.
“Since the [federal election], there’s certainly a lot more confidence and there are more homes hitting the market,” said Paul Biller, Principal of Biller Property in Double Bay.
“Still [it’s] not as many as we’d like, particularly for the time of the year — however, whatever is on the market is selling very well.”
Mr Biller, who typically deals with Sydney eastern suburb homes valued between $5 million and $15 million, said the apprehension of sellers had faded in recent months.
The “unexpected” Morrison government win in May had eased concerns about potential changes in lending policies and investment rules, he said.
Jackie Williams, a senior property associate at Warwick Williams Real Estate in Sydney’s inner west, said overwhelming demand by buyers prompted her to move one auction forward by 10 days.
“Certainly in our area, we’ve reached a steady level and now people feel quite happy entering the market, knowing what they should be paying,” she said.
“Vendors are also finding confidence that now is the time to move.
“Prices aren’t falling as we felt they were for the last 12 months, so they’ve got the confidence that when they put their property on the market they’ll achieve a certain level.”
Ms Williams said the volume of sales had tripled since this time last year, but the volume of properties available across Sydney had dropped by about 33 per cent.
“If anything, there’s a lot more demand than there is supply,” she said.
However, Sydneysiders are being warned to temper their expectations and to not expect house prices to increase 1.6 per cent every month.
“Values in Sydney are still down about 13.3 per cent from their peak, so that’s important to consider,” said CoreLogic’s Cameron Kusher.
“Yes, we’ve seen growth but we’re still a long way off the previous peak [June 2017] in the housing market.”
He said the latest figure was terrific news for people in Sydney looking to upgrade by taking advantage of recent long-term falls of Sydney’s most expensive homes.
However, this “reversal of fortunes” wouldn’t extend to those yet to have a stake in the property market, he said.
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