Property prices set to rise and stock will be tight
Well as I write this Sydney Property Market Update, auction clearance rates have just hit the highest point they have been in 12 months, and the confidence and sentiment of buyers is now on the rise once again.
I don't doubt that the property market has hit rock bottom and is now making a return, but I think the major problem moving forward in this new market will be the lack of stock.
What I call the “Mexican Standoff” is already starting to occur, and that is when vendors want to see enough property sold for good prices in their local area, before they test the market with their own property.
Another problem that causes stock shortages is when the downsizer vendor decides that the market is now moving up so they don't sell now, opting to sell later to get the maximum dollar for their property, then proceed to move and downsize into a property of a lot lesser value.
Now that the banks are getting more comfortable with their lending, I do believe this will help the property market tremendously moving forward. Therefore, my first recommendation to everyone is to start calling your broker now to do a loan 'health check' because you might need to clean your act up credit wise, before they think about giving you finance and that could take 2 to 3 months.
PK's Property Market Predictions
I am confident that in 12 months time the Sydney property market will have at least a 10 percent increase from where it is now. If you are a first home buyer, the new 5% deposit scheme will be in force from January 1st 2020 so that lower end of the market is going to get a huge adrenal boost.
PK's Hot Property Tips
If you are a first home buyer and are ready to go before the end of the year, I would start trying to buy now and avoid all that new competition coming in January 1st next year.
Call me directly today on 0419 200 018 for a confidential chat and for independent advice in regards to helping you purchase your next home or investment property.
To check out more of our market updates, hot investment tips and negotiating tricks, click here for our home buyer advice articles or call one of our Buyer's Agents today on (+61) 9960 1066, or email us so we can help you find the right property at the lowest possible price.
Also don't forget to check out our 300 plus testimonials and recent client savings from the past 22 years.