Sydney Real Estate Market
A Look at the State of the Sydney Real Estate Market in 2017
Sydney’s real estate market has undergone one of the most extreme turnarounds in the past decade, with the average home now being valued at well over $1.15 million toward the centre of the city. Many experts have said that the increase has grown to out of control proportions, but how does this trend look set to continue in 2017?
The current state of the Sydney real estate market in 2017
Just 10 years ago, the average home in Sydney had a value of $400,000 and this amount decreased the further away from the centre of the region a person searched. After experiencing an incredible boom in property demand, house prices doubled by 2012 and rose again in 2016. The current growth has been put down to an influx in investment from international sources and the trend certainly looks set to continue until at least the end of 2018, whereby experts predict a gradual drop.
What does this mean for property owners?
With the average home possessing a value of $1.15 million and prices now being at a record-breaking high, sellers wanting to place their homes up for sale would be best to do so now. That being said, with predictions stating that this amount could increase further still until the end of 2018, it might be worth holding off – but if records are anything to go by, the decrease in values could occur at any moment.
What this means is that for property owners, selling before the end of 2017 may well be the way to go, with only a minor loss in profit if prices continue to rise into 2018. On the other hand waiting until then may be a mistake, as experts can’t guarantee their predictions, so those that choose to hold off on selling may end up losing out on thousands of dollars instead.
What about home buyers?
With house prices now at an all-time high, the big 4 banks in Australia are doing all that they can to accommodate average earners in their hopes to obtain a mortgage. That being said, it might be worth holding off on purchasing for at least the next 18 months, simply to allow enough time for the property market to correct itself - even the industry experts are saying that current property values are ridiculously high.
For owners, selling between now and the end of 2017 certainly looks set to offer the most substantial financial reward whilst minimising risk. For buyers, waiting until the end of 2018 may be the way to go, or holding off until 2020 when prices are predicted to drop by up to 30% in some parts of Sydney.