I’m going to keep this short and sweet and please be aware that this article is purely my opinion based on my 30 years of buying and selling real estate.
Sydney wide prices have dropped 10% but in the Northern Districts it’s more like 15-20% and hence why I believe we won’t see further drops in our area. Prices have found their level and will stabilise moving into 2019. One of the reasons why is because the Northern Districts were the first to experience the boom with huge increases and other areas then followed – the first one to rise is why we are the first to drop. Also remember this means property still increased approx 60% even after the 15-20% decline from the start of the boom.
If you are not planning on selling then it’s pretty much irrelevant. Real estate is a long term investment, sit it out, and it will no doubt boom again – might not be for another five years to more but it will happen.
If you are selling and buying in the same market, it’s also pretty much irrelevant. In actual fact it’s an awesome time to upsize. Houses have of course lost more value than units and villas so hence the gap to upgrade has become smaller.
The main issue we are finding is people would love to buy, they just can’t get the finance required due to the tighter lending restrictions. They will ease, it will just take some time, and the Royal Commission also needs to be finalised. You will also find that it’s the big four banks that are really restricting their lending, and the smaller institutions seem to be using this to their advantage and are offering some great options.
The other point I also stress is buy quality property and the impact will of course be less. Some of the properties in the area that are selling for so called “cheap” prices are because they normally have something wrong with them. Busy road, low side, sewer issues, termites, structural issues, nowhere near transport, etc. So just be careful when looking online and comparing. You could see something that looks like it sold for a bargain or is asking a “cheap” price but unless you know the history behind it, have physically viewed the property and also viewed the contract you are not comparing apples with apples.
I’m putting it out there that I think now is a good time to buy in the Northern Districts and it’s hit the bottom and is now levelling out – and you won’t know until you look back and realised you missed a great buying opportunity.
I know that last sentence is spoken like a true real estate agent – which I definitely don’t mean to sound like, it’s just my personal opinion and only time will tell if I am right.
Take care over this Christmas break, enjoy the time with your family, especially the young ones as they grow up way too fast!