Sydney property prices are rapidly bouncing back and many buyers are concerned that if they don’t buy now they’ll pay a high price for it later.
FOMO or the ‘fear of missing out’ is very real in the Sydney property market at present, which may come as a surprise considering the city has just come out of one of its biggest downturns in history.
Property prices have been tracking higher for the last 4 months after finding a floor in May 2019, with CoreLogic data showing an increase of 1.7 per cent for the month of September.
However, even though values have been steadily rising, they are still 11.9 per cent lower than they were when they peaked in Sydney in July 2017.
A return to peak conditions
While properties may still be cheaper than they were at Sydney’s peak, there’s a chance that they could skyrocket again.
Domain economist Trent Wiltshire has predicted that prices could reach peak levels again within the next 3 years, and could be close to peak levels by the end of next year.
“Based on recent indicators, it looks like price growth over the next 12 months could be above 5 per cent, maybe even around 10 per cent,” he said.
Wilshire did note however that it would take longer for the market to truly recover.
A number of factors have contributed to the market’s turnaround, including lower interest rates and an easing of lending criteria.
There are also many buyers in Sydney who are hoping to jump into the market while prices are relatively affordable compared to what they were (or will be).
What happens if I don’t make a purchase now?
There’s no need to panic just yet if you’re not ready to spend your Saturdays going to open homes. There’s still a bit of time before property prices are predicted to reach peak levels again, and low interest rates look to be here to stay for a while too.
The best time to buy a property is when you’re in the right circumstances to do so, not when the market dictates it’s the right time.
If you do want to jump on-board and get a property as soon as you can, there are things you can do, including:
- Create a budget and start saving
- Figure out how much you need for a home deposit (normally 20% of asking price unless you use LMI)
- Research the property market
- Get professional advice