What the Sydney market slowdown means for house hunters in 2018
Thinking about buying property in Sydney in 2018? The current market slowdown has made some buyers nervous and others raring to go - so what’s this year going to be like for property hunters?
Here’s how you can expect the cooler market to affect your buying experience, and your return on investment.
What will the market look like for buyers this year?
This year’s market is going to be much gentler on buyers than it was last year.
A combination of lending restrictions, buyer fatigue and the media’s dramatisation of the ‘bubble burst’ will reduce the number of buyers competing for property in Sydney.
Currently there’s a higher-than-average number of properties available in Sydney and this is likely to normalise as the market cools. That being said, it’s unlikely drop off dramatically as there will always be those who need to move or want to move on.
Overall, though, if you’re looking to buy a house in Sydney you’ll come up against less competition and a cooling of the red-hot prices we’ve seen recently.
Is now the time to buy?
As always, the answer to that question depends on what you’re looking for, however, if you’re a first home buyer then 2018 is going to be an opportunity the likes of which we haven’t seen in Sydney for a while.
If you’re a property investor you should be keeping a keen eye on the market, because this period of slower growth is brimming with opportunity if you look in the right places.
You may not see massive returns the short term, but the cooler market will give you a much better shot at the type of property you’d have had to fiercely compete for over the last few years when there were more buyers than sellers.
Any advice for people looking to buy a home in 2018?
If you’re new to property or are a first-time buyer, be sure to take the ‘bubble burst’ media hype with a pinch of salt. Yes, the market is definitely cooling, but it’s regressing in relation to a scorching high, so it’s not quite as apocalyptic as the surrounding rhetoric would have it seem.
Also for those new to the market: beware of real-estate agents. They see first time buyers coming a mile off and are very skilled at spinning the deal the the sellers’ favour. The cooler market means serious buyers are in a stronger position, be sure to use it wisely in your negotiations.
As a side note, mortgage repayments are likely to be on the rise this year, so be sure to consult an expert when choosing your provider and how your repayments are structured.
Finally, always surround yourself with the best possible team when deciding to buy property. Hiring experts to help you make your decision reduces the risks associated with such a serious financial investment.