Are House Prices Falling in Sydney? Time to Sell?
One of the most talked about topics in the Sydney housing market recently has been whether house price falling in Sydney and if now is the right time to sell your home if they are. A lot of factors play into this question. Including general market trends as well as your own unique situation as a property owner in this city. Here’s everything you need to know to answer this question definitively and sell if it’s the time!
Is House Price Falling?
The now-familiar story of house price falling continues, but the falls seem to be less severe. As auction clearance rates have remained strong despite significantly more properties being offered for sale over the weekend and despite last week’s interest rate hike. It may be that the market is looking for a bottom.
Homebuyers seem to have regained their equilibrium after the initial shock of the Reserve Bank’s first hike in May.
In light of predictions for a rise in inflation in the coming months. We might see a positive turnaround in housing prices by early next year.
After the housing boom of 2020 -21, these high-value markets were among the hardest hit by price falls during the subsequent correction and rising interest rates.
We’re not doing well now, but the latest data shows that we could go positive early next year.
Multiple public holidays over the past few weeks led to higher auction activity this week in Sydney and Melbourne.
1,799 homes sold in capital cities, up 11.2% from last week when 1,618 homes sold and up 36.7% from the previous week, which had 1,316 auctions.
Corelogic estimates that the combined capital preliminary clearance rate was over 60% for the sixth consecutive week, and is currently at 63.4% – the highest level since late May, which was at 63.7%.
In spite of this upward trend in auctions, last week’s activity is significantly below the number of auctions last year (2,708) when selling conditions were stronger and clearance rates were higher (80.2%).
Here’s what’s happening that cause house price to fall…
Over the past week, the median price for property in Sydney has declined -0.3%. Over the past 28 days, the median price for property in Sydney has declined -1.7%. Over the past 12 months, the median price for property in Sydney has declined -7.0%.
Melbourne house prices decreased -by 0.2% over the last week, decreased -0.9% over the past 28 days, and decreased -by 4.6% over the last 12 months.
Prices in Brisbane have declined by 0.4% over the last week, and by 1.5% over the last month, but are up 12.1% in the last year.
Australian capital city housing prices have decreased -1.3% in the last 28 days and are -1.7% less in the last 12 months.
Of course, these are generalized numbers- no one property market is the same in all cities.
While some sectors of the economy are on the rise, others are declining.
The number of A-grade properties for sale in Australia is still in short supply
Despite the increased number of homes for sale, the market still lacks A-Grade properties, which are selling quickly.
There may be more houses for sale currently, but keep in mind that buyers are sellers and sellers are buyers, so when a house sells, another buyer is looking for a new one.
It can be seen from the table below that the tables are turning in favor of buyers as more properties are coming on the market, giving them more choices, which is why they don’t seem to feel any urgency to make a purchase.
Are you wondering how you should invest in this interesting phase of the property cycle?
If you’re like a lot of property investors, you may be wondering what’s the right thing to do at present.
Given these three choices, is it a time to buy, sell, or just wait?
You can trust the team at Sydney Property Realtors to provide you with input, information, and results.
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