Recent figures from CoreLogic have shown that dwelling values are down across the country, led by falls in Sydney. Data shows a national decline in property values of 0.4% over the past 12 months, with Sydney values 4.2% lower.
While this may sound concerning for a lot of people eager to jump into the property market, there’s no reason to panic just yet.
Markets constantly rise and fall
People often forget that the property market is always moving in cycles. Prices can’t continue to rise forever, and particularly in Sydney where property prices have been experiencing a prolonged period of growth, it’s reasonable to expect that prices could stagnate. But just because prices are down doesn’t mean they won’t pick back up again.
There are plenty of factors that could see the market turn around quickly, including overseas investment, population growth, and the return of first home buyers who have been waiting a long time to make their moves.
There are markets within markets
Try not to pay too much attention to property headlines. It may sound scary hearing that Sydney or Melbourne property prices are falling, but this may not represent all parts of these cities. Don’t just look up data for a city as a whole, instead investigate what is happening in the particularly area you’re interested in, it may be performing much better than you realise.
Don’t wait if you’re in it for the long term
If you’re looking to buy a home, or plan to hold onto your property for a number of years, then there’s little point in waiting for the market to bottom out.
First of all, you could be waiting a long time (if not forever), and second of all you could be missing out on lots of great opportunities that are available right now.
Property is best thought of as a long-term game. Any small dips in the market area irrelevant if you have no plans to sell when prices are low. Plus, if you buy a home to live in you will have gotten value either way by having a place that you can call your own.
Always do your research
Purchasing a property is a major decision so it’s always going to be a little scary making that leap into the market. Research the area you want to buy in thoroughly so you can feel confident in the decisions you make. Visit lots of open homes and see what is happening on the ground.
If you would like any advice about what is happening in the outer western Sydney property market, contact Professionals Outer Western Sydney.