The Northern Beaches is still on fire compared to the rest of the city, as we recorded a clearance rate of 84.9% last weekend, compared to Sydney’s 78.4%.
The negative press about home values has started to surface, however we need to be cautious in calling a peak in the market after only one month of soft results. April is different to a normal month as Easter, school holidays and the ANZAC long weekend can create some unreliable statistics.
My bet is that Sydney home values are starting to enter into a two-speed market. The Northern Beaches market will remain strong as listings are still in low supply while the areas such as western Sydney that have had significant new dwellings and apartments approved and built will be the first to see home values stall, or even drop as supply starts to exceed demand.
In fact, Citibank has come out this month predicting that home values in Sydney and Melbourne may drop by 7% over the next 18 months. It has now become a roll of the dice as to where Sydney home values are about to go.
However it was no surprise that the RBA left interest rates on hold this month and the commentary is that interests rates aren't about to rise anytime soon which will underpin the market from bursting.
Here’s an interesting statistic about Sydney’s house price growth: 5 years ago, only 6 suburbs in Sydney had a median price range of 2 million or more. This list has now expanded to include a whopping 78 suburbs. Some of which did not even have a median price range of 1 million 5 years ago.
As we enter into the cooler months, it still does not get any better in terms of timing if you are thinking of selling. Why wait for Spring to sell, just as everyone else does? Selling in winter ensures you are not competing with too many other homes in your suburb, pushing up the price a buyer will pay for yours.
If you have plans to sell your home in the next 3 months, please contact me to discuss how we will achieve the hidden percentage in the value of your home before the Spring rush rolls around.
Thanks for reading,