We saw a 1.4% increase over the month and a 2.4% increase over the quarter in Sydney, placing our home values 13% higher than February 2014.
Homes are still selling faster than ever and 3 days quicker on average compared to this time last year.
And in national real estate news - how's this for a big number - $5,399,951,800,000 - just shy of $5.4 trillion dollars. That's the estimated value of all housing in Australia, with NSW contributing just over 2 trillion to that figure.
Our national value has increased by $407 billion dollars in one year alone.
So what's the likelihood of Sydney experiencing a housing 'bubble'?
With the RBA cutting interest rates to a record low of 2.25%, this chance has increased and with another rate cut anticipated in the coming months, Sydney's housing market is predicted to increase by a possible 9-10% in 2015.
Sydney's rise has been on another level when compared to the rest of Australia. It’s prices have soared 33% since mid 2012 and are rising at 13% year on year, compared to the rest of the country at 23% and 8% year on year.
Take a look at this graph showing the investor share of the market.
Every other state is flat at around 40%, but Sydney’s has suddenly shot up to 60%. Investors are borrowing like crazy and dominating Sydney real estate.
It’s caution to note that a large proportion of these investors will drop out of the market when rates do increase, leaving a very large proportion of buyers exiting the Sydney market.
Add to this the risk of surplus construction activity, and it’s no surprise that some commentators are predicting a price fall in Sydney property values when interest rates start to rise.
As for now it doesn’t get any better than this if you are thinking of selling. Buyers are still highly motivated to secure a property in this market knowing that their interest repayments will be very low.
I’d love to help discuss your selling strategy in further detail, so please contact me at any time.
Thanks for reading,