It now looks like somewhere between August and November 2017 will be recognised as the Sydney market peak.
Price falls tend to step down rather than gently drift so changes can seem dramatic. Over the longer term these variations don’t seem so large but month to month they can be a little confronting & hard to understand.
Usually buyers are first to adjust their price expectations (really what we mean is they get scared the market is falling & will only buy if the price seems particularly attractive). A few sellers sell at these lower prices & other buyers, valuers, agents & new sellers see these reduced prices as the market. Most existing sellers on the market tend to hold out, hoping to get the price they could have achieved if they sold earlier. Some sellers withdraw from the market expecting that the prices will recover in 6 months. Others who stay on the market eventually adjust their asking prices down as more sales set the market. For a while the market restabilises at a new price point & properties start changing hands a little more readily.
I could explain ideas such as convergence to trend lines or economic drivers, building booms & busts; but probably the simplest, most rational reasoning I can give you is that the same positive expectations & cost of funding that drove the Sydney market up for the last 20 years, has been replaced by caution both with buyers & with financiers.
That change in sentiment will probably be around for a while latching on to different news items. Everything from trade wars, building booms & a growing number of commentators shouting out that growth can’t keep happening.
Down turns (as opposed to market hiccups) can last at least 5 years. During that period we typically see 3 or 4 clear price step downs followed by a longer period of stagnation. You’ll see constant reports that the Sydney market will not fall further & just as many saying it will.
All fun & games.
For many of you who are not looking at selling in the near future, you may take solace in the fact that the market will probably only come off by between 10-15% effectively taking us back a couple of years in terms of value. For those that are planning on a move, it might be helpful to get an idea of where you are at right now. We can give you a price estimate of your property by just doing a simple drive by. We might need a little information on its internal condition but we don’t need to inspect unless you need a more accurate number.
It doesn’t hurt to be aware & updated on what your property is worth.
If you would like to avail yourself of this service, email firstname.lastname@example.org or call 8878 1900 with your property address & we’ll organise one of our team to come back to you in the coming week with a market estimation for your property.