It’s certainly been a year unlike any other.
This time last year nobody would have been able to predict the rollercoaster ride that was 2020, but even as we all came to grips with what it’s like to live through a global pandemic, things haven’t turned out too bad for the Sydney property market.
The real estate market has been extremely resilient and while we saw things slow down as the country entered into lockdowns, things have already started to pick up again.
Of course, just as we couldn’t predict 2020, it’s impossible to know for certain what will happen in 2021 (or we would all be filthy rich), but in the short to medium term the market looks set to continue on its recovery.
We may see some people being more conservative with their purchases as they wait to see how future events unfold, but there are a lot of other people who are eager to take advantage of some of the market’s current drawcards.
For one, the cost of money is negligible, with some lenders offering home loan rates of less than 2 per cent.
In addition to low rates, both the state and federal governments are offering a number of incentives to entice buyers, particularly first-home buyers and those purchasing new homes, such as the First Home Loan Deposit Scheme and HomeBuilder.
These schemes have been designed to help provide a much-needed boost to the building industry, which is one of the country’s biggest employer’s.
Things are looking good for 2021
These drawcards, coupled with the fact that the property market has held up so well in 2020, is likely to keep property prices competitive and it is looking very likely that we will see a rising market next year.
While the property market probably can’t afford substantial gains, it’s looking like there will be a lift in house prices, possibly by about 5 per cent or so.
Is now the time to buy and/or sell?
If you are thinking of buying or selling your property then there are a lot of reasons why you would be better off doing so sooner rather than later.
For those thinking of selling and upgrading their property, you would likely be better off doing so before the market takes off again.
While it might sound like a good idea to hold out and wait for prices to go up a further 5 per cent, you need to keep in mind that prices will also be up on any property you purchase too.
Most costs involved with your sale and purchase are scaled to the amounts in your transaction, so if you wait for prices to go up then you would not only be looking at an extra 5 per cent on a more expensive home but you could be looking at paying higher stamp duty and you’ll possibly be up for lenders mortgage insurance too, if you can’t make up the required 20 per cent deposit to avoid it.
So by waiting to upgrade you could actually end up spending thousands more.
For those simply looking to enter the market, the sooner you buy the better off you are likely to be in the long run.
In the Outer Western Sydney market in particular there is a lot happening, with major infrastructure works such as the new airport and metro line keeping buyer interest strong.
Everybody should of course do their own due diligence and assess their own personal circumstances before purchasing a property, but there’s a lot of good reasons to get into the market right now if you are in a strong position to do so.