FIND YOUR LOCAL BUYERS' ADVOCATE:
    TALKS & PODCAST           CALL US CALL US
1300 655 615
 
 

The
Propertybuyer

Podcast

Hear the latest weekly insights into the property market via podcast by Rich Harvey, CEO and founder of Propertybuyer.

 
Fri 24 May '24 with Rich Harvey Granny Flats: Boost Your Yields & Faster Mortgage Repayments
 
 
Fri 3 May '24 with Rich Harvey Unpacking the Northern Beaches with Incredible Agents
 
 
Fri 29 Mar '24 with Rich Harvey How to build a $7 Million Property Portfolio from scratch
 
 
Sat 16 Mar '24 with Rich Harvey Why Invest in Melbourne?
 
 
Mon 26 Feb '24 with Rich Harvey Sydney’s Inner West – Hotspots and Outlook for 2024
 
 
Mon 12 Feb '24 with Rich Harvey Decoding Sydney’s North Shore Market – Outlook and Opportunities.
 

 

Listen to many more
podcasts on our
Podcasts page.

 
 
 

Propertybuyer Blog
Property advice, market updates & more

 

Has the Sydney market actually peaked yet?

May 19, 2015 / Written by Rich Harvey

 

By Rich Harvey, CEO, propertybuyer.com.au

When the Reserve Bank of Australia (RBA) cut the cash rate to 2.25 per cent in February, it prompted the lowest interest rates on home loans that we've seen since 1968. The decreased cost of mortgage debt saw people flock into a Sydney market that was already aflame, and auctions for Sydney luxury homes and the like went through the roof. 

And now it's happened again, with the official cash rate cut by the RBA board to an all-time low of 2 per cent. I was surprised by this, to be honest - it's a lot of fuel to add to the property fire, and the Sydney market is already reaching unprecedented highs. I understand that the RBA wants to stimulate the rest of the economy, but what sort of implications is this going to have for Sydney real estate? Will it push local real estate to yet another peak? 

Wheels keep on turning, prices keep on rising

The Real Estate Institute of NSW (REINSW) has the Sydney median pegged at $914,056 for the March quarter of this year, based on figures from the Domain Group's House Price Report. And Malcolm Gunning from the REINSW thinks this is going to break the million dollar mark before the end of the year. 

While his main concern was people being priced out of the market, I think other important points can be taken from this news. First, the market hasn't reached its apex yet - the canny house hunter, with the right advice from a buyers' agent, can easily still make profit out of investment propertty in the current climate. 

And secondly, those who already own a home are likely experiencing the same increases in home price. That means more value when you sell, and given current supply issues, you're always going to be able to sell. It creates great conditions for getting out and buying a home now, safe in the knowledge that you can unload your current real estate with a snap of your fingers. 

When will the peak occur?

On current forward projections, prices could keep rising for another 12 to 18 months. That gives you a lot of room to purchase Sydney investment property, and also a time frame to organise your finances. The market growth won't be sustainable forever, and interest rates will rise eventually.

This means you have to make sure your investment is sound, and that your finances can handle a rise in interest rates down the line. Speak to your broker, but I'd recommend a 2 per cent interest rate rise buffer when you budget. 

For more advice on market trends, don't forget to check out our free reports

The Propertybuyer
Podcast

 
Fri 24 May '24
with Rich Harvey
Granny Flats: Boost Your Yields & Faster Mortgage Repayments
 
 
Fri 3 May '24
with Rich Harvey
Unpacking the Northern Beaches with Incredible Agents
 
 
Fri 29 Mar '24
with Rich Harvey
How to build a $7 Million Property Portfolio from scratch
 
 
Sat 16 Mar '24
with Rich Harvey
Why Invest in Melbourne?
 
 
Mon 26 Feb '24
with Rich Harvey
Sydney’s Inner West – Hotspots and Outlook for 2024
 
 
Mon 12 Feb '24
with Rich Harvey
Decoding Sydney’s North Shore Market – Outlook and Opportunities.
 

 

Listen to many more
podcasts on our
Podcasts page.