“Will Sydney house prices fall? How long can this market keep running for?”. For the past 12 months or so this foremost question has been on most Sydney property buyers lips. The same question has been the topic of much media commentary and expert opinion yet there has been no consensus.
Simply put; while consumer confidence runs hot, so will the residential property market. So what is it that makes consumers confident? Or, on the flipside, lose their confidence? In my opinion, the residential property market in Sydney reacts to major macro forces rather than the culmination of many small ones. For instance, things like the seasons changing and elections occurring are so run of the mill that the market barely registers them.
In my time in real estate the things that have had a major impact on the property market have included legislation changes to auction rules, the GFC, government stimulus packages and major changes in interest rates. So will Sydney house prices fall? Until last week I had not seen anything on the horizon that could impact the Sydney property market.
However, the latest federal budget announcement could be the very thing to trigger a market slow down.
So proceed with caution. The road ahead may be bumpy yet may contain exciting opportunities for the savvy buyer.
First published May 2014
Good Deeds buyers tips are intended to be of a general nature. Please contact us for advice that is specific to your individual circumstances. You may also need to get advice from other professionals such as an accountant, mortgage broker, financial planner or solicitor.