If you picked up a newspaper recently or looked at any property article digitally with regard to the current Sydney real estate market, you would be holding off purchasing property for fear of catching a falling knife.
There has been a lot of commentary about easing market conditions and there is no doubt that the demand has eased. I have had a lot of discussions with prospective buyers and investors wanting to hold off for 6-12 months.
Sensible conversations need to be had to understand that the property market is not going to suddenly drop off dramatically.
If unemployment rates and interest rates were to start climbing and population growth slowing then I would certainly sit up and take notice as that would have a significant impact on property pricing and prospective purchasers thought process on purchasing property.
The 2 fundamental factors that play a significant role in property conditions right now are that with population growth remaining steady and monthly repayments sensible (although I do appreciate it’s becoming more difficult to secure finance with macro-prudential regulations), the property market is not suddenly going to come crashing down.
We have seen first home buyers come back on the scene which is fantastic and in recent weeks a significant amount of vendors have taken into consideration the changing market conditions and appropriately adjusted their price expectations.
As we enter what is always a busy spring selling season there is a new gap emerging.
More listings and the potential for more realistic prices are together driving more potential buyers into the market. It’s a great time to buy as you might be bidding at an auction with 1 or 2 other registered bidders rather than 5 or 6 competing with you.
But at the same time, as a result of evidence of more buyers coming we are now seeing vendors more excited about the potential for increased demand to drive up prices.
We are having sensible conversations and seeing properties transact at prices that are fair to buyer and seller based on current market conditions, particularly in the areas which we operate in around the lower north shore of Sydney.