Property prices in Sydney have dropped 7.8% over the past 12 months and buyers have greater choice with 17% more properties on the market than this time last year according to data professionals, CoreLogic. Buyers, however, seem increasingly happy to hold back in the hope that prices will drop further and they are definitely enjoying being back in the driving seat, after enduring years of a seller's market with strong competition and soaring property prices.
It’s impossible to sugar coat current market conditions. Selling a property today is tough; auction clearance rates are the lowest seen in 10 years, homes are taking longer to sell and owners need to accept that their initial asking price will probably be discounted on average by 7.3% (source: core logic). House prices in many cases are now as they were in 2016.
As bitter as this may taste for sellers, it is wise to be reminded that investing in property should be viewed as a long-term proposition, especially if it’s your own home. We consequently urge owners to focus on the big picture and not the temporary short-term loses; if you see a property that meets your requirements, don’t wait because it may be a long time before a similar opportunity shows itself again.
If you have outgrown your family home or need to relocate, don’t wait for the market to turn around. Don’t be that owner who blindly refuses to take $40,000 less today because in six months time you may be selling at an even greater discount.
No one can predict when the property cycle will shift again but experience in the industry has shown us that it eventually will. If you are buying and selling in the same market it doesn’t matter what the conditions are; what you lose with one hand, you gain with the other. The bonus of the current stabilising market is that you will benefit from lower transaction costs and paying less stamp duty should always be celebrated.
Do your research by looking at recent, comparable sales and most importantly find an agent you can trust. In this market, your agent must be able to demonstrate strong negotiating skills and local knowledge.