The Sydney property market is continuing to gain pace as we steamroll towards the end of the year with recent sales figures highlighting further price increases, according to Domain’s data.
House and unit prices in Sydney were up by 4.8 per cent and 2.6 per cent respectively over the September quarter, making for the biggest price increase that has been seen in over two years.
Confidence in the market has clearly returned, with Sydney houses having now gained almost one-third of the price falls that were experienced during the downturn.
The auction market is improving too. Domain’s figures show an October auction clearance rate of 71 per cent, the highest they have been since April 2017.
With the expectation of further cash rate cuts in 2020, and some sellers holding out for further price increases, there’s a strong chance that clearance rates will go up again in November and into next year.
A strong turnaround
Falling interest rates and the prospect of further cuts, coupled with relaxed lending conditions and all-round improved sentiment have contributed to the strong bounce back of the Sydney market.
Homebuyers are coming back into the market with renewed confidence, first homebuyers are trying to get their foot on the ladder and investors are returning.
Sellers are coming back into the market too, with Sydney seeing a 5 per cent increase in new sale listings from September to October.
What’s in store for 2020?
If we see further rate cuts next year as many expect then there’s little doubt that market activity will continue to ramp up.
SQM research are predicting as much as a 10 to 14 per cent jump in property prices next year and possibly higher depending on the state of the economy.
Either way though the market doesn’t look to be slowing down anytime soon, so if you’re looking to get into the market before the market reaches peak levels again then you better make your move soon.