As a buyer’s agent who is pounding the streets daily, I’m here to tell you that the conversations we should be having about real estate are changing. We’ve seen two years of astronomical growth, followed by a 12-month period where the market corrected itself by approximately 10%. The intriguing part? Sellers are scarce, and yet buyers are plentiful. Here’s why traditional metrics like market forecasts might be losing their lustre and what you should consider instead.
Revisiting Forecasts: Westpac and CoreLogic Weigh-In
In the fast-paced world of real estate, keeping your finger on the pulse of property price trends is crucial. Westpac has significantly revised its 2023 property price forecasts. Initially predicting a flat market, Westpac expects national dwelling prices to rise by 7% in 2023, followed by a 4% increase in 2024. Precisely, for Sydney, a robust 10% increase is forecasted. CoreLogic’s data supports this strength finding Sydney house prices rose by 0.9% in July, which may seem small but equates to an annualised rate of 10.8%.
And let’s add some clarity—growth in the last six months has regained almost half of what was lost in the preceding year. So, the narrative isn’t as grim as some might think.
Three Scenarios for Buyers in a Spring Market
Prices Stay Flat:
Buyers could use stable prices and increased listings to find homes that meet their long-term needs.
Prices Rise Slightly:
If you’re considering buying, slight price increases should be fine with you, especially when looking at long-term value.
Prices Drop Further:
Less likely, but if it happens, it could offer some buyers a more favourable entry point.
Beyond Prices : The Real Buyer Motivations
Given these shifting conditions, it’s worth focusing on what’s truly important for buyers: your motivations and goals. Whether it’s the appeal of a specific neighbourhood, impending lifestyle changes, or the need for more space, these factors often outweigh market trends.
Real Estate Beyond Numbers: A Personal Decision for Buyers
Buying a home is more than just a financial transaction; it’s a life-changing event full of emotional intricacies. This is where a buyer’s agent—like myself—can make all the difference. With limited stock and sellers waiting for an increasingly unlikely decline, now might be an ideal time to buy.
A Changing Landscape: The Spring Phenomenon and Mortgage Stress
As we approach spring in Australia, expect an increase in listings. Whether driven by the season, mortgage stress, or sellers losing patience in their waiting game, more options will be on the market. Given that a significant decline in property prices seems increasingly unlikely, there’s little reason for sellers—or buyers—to remain on the fence.
A Look Ahead: Forecast for 2024
Real estate analysts across New South Wales predict a 2% to 4% increase in property prices 2024. While this is an educated guess, remember that forecasts are not guarantees. No one foresaw the significant price increases in 2020/2021 during the pandemic, so take predictions with a grain of salt.
Key Takeaways for Buyers
Shift in Momentum: Initial flat projections for 2023 have been revised, signalling potential growth.
Population-Driven Growth: Cities like Sydney and Melbourne are at the forefront.
Affordability Concerns: Westpac warns that affordability could be an issue, especially if interest rates rise.
Informed Choices: Consult multiple reliable sources and advisors before making any buying decisions.
Conclusion
While prices are a fundamental metric, the Australian property market is about much more. As a buyer’s agent, my goal is to help you see beyond mere numbers to make sound, beneficial decisions in a complex market landscape.
So, if you’re a buyer waiting for a sign, this might very well be it.
Now, Your Move, Literally!
Feeling lost in the property jungle? Can’t keep up with fast-changing interest rates? Or is your mortgage approval ticking down like a time bomb set for 90 days? The cure for your property blues could just be a phone call away.
Imagine saving not just money, but also time and stress on your next property investment. When you partner with a professional buyers’ agent like us, we equip you with the essential knowledge to see through the sales hype and make clear-headed decisions. Benefit from our deep-dive research on past sales and market comparisons, ensuring you never overpay. Plus, get a backstage pass to the elusive world of “off-market listings” not yet on the market.
So, why wait? Let’s make this spring a season for the property history books—filled with smiles, signed contracts, and maybe a few champagne corks popping.
Happy Hunting!
Sarah Kaye Buyers Agent
0405 500 052
