- An ‘avalanche’ of homes will flood the housing market in the next six months
- The rise in listings has shifted the market from a seller’s market to a buyer’s
- A lower demand from foreign investors means more houses are now selling
- There has been a 21.3 per cent increase in the number of listings since 2017
The start of 2018 has signaled positive change for the Sydney housing crisis as the rise in listings shifts the city from a seller’s market to a buyer’s.
The Daily Telegraph reported on Saturday that an ‘avalanche’ of homes will flood the market between January and June as people attempt to sell before their properties before they decrease too much in value.
An increase in the number of houses for sale coupled with a lower demand from investors could mean that 2018 is the year to break into the housing market.
The start of 2018 has signaled an end to the Sydney housing crisis as homes flood the market
The median house price is Sydney has tumbled to $859,000 – a drop of 2.1 per cent in 3 months
Compared to the same period last year, there has been a 21.3 per cent increase in the number of listings, sending the median house price tumbling to $859,000 instead of $1 million.
Furthermost, the median price is expected to drop a further five per cent in the next two years – a welcome change considering that the typical value of a home skyrocketed 70 per cent between 2012 and 2017.
The change in the market as also brought about a change in the mindsets of homeowners, according to SQM Research director Louis Christopher.
‘Before, homeowners wanted to buy their next home before selling their current one so they aren’t locked out of the market,’ he said.
‘Now the fear is that if they buy first and can’t sell at the price they want they’ll be short-changed.’
SQM Research director Louis Christopher noted a huge change the mindsets of homeowners
Among those tipped to sell are families looking to downgrade but had ‘delayed’ the decision
Mr Christopher added that there would be no price collapse because population growth is strong, the economy is ‘good’ and the demand for houses remains as strong as ever.
Meanwhile, Realestate.com.au chief economist Nerida Conisbee said that a ‘calmer’ market will be beneficial to first home buyers and those looking to upgrade.
Among those tipped to sell are families looking to downgrade who may have ‘delayed’ the decision to buy a new property in recent years but will now have to the chance to do so.