Is the Sydney Real Estate Market a Buyer’s Market?
Did you know that 66% of Australians own a home? If you live in Australia and you think it’s time to buy a home, you might be wondering whether now is a good time.
Ultimately, it depends on what part of Australia you want to buy in. In this article, we’ll be honing in on Sydney, Australia. Specifically, we’ll answer the question, Is the Sydney real estate market a buyer’s market?
Not sure what a buyer’s market is? Don’t worry; we’ll be answering that too. That way, you’ll know if it’s better to buy now or to wait. Let’s get started!
What Does Buyer’s and Seller’s Market Mean?
Before we learn more about the Sydney real estate market, it’s important to first understand what a buyer’s and seller’s market is. Let’s start with a buyer’s market.
This occurs when supply is greater than demand in the real estate market. In other words, there are plenty of homes for sale but not enough interested buyers.
This gives any potential buyers leverage over sellers. As a result, it’s common to see lower prices and homes that sit away on home listings for months at a time. The opposite of this is a seller’s market.
This occurs when there are plenty of interested buyers but not enough homes to go around. When this happens, the advantage shifts toward the seller.
They’ll often have multiple parties that get in a bidding war over their property. As a result, real estate prices rise, and homes fly off the market when they’re available.
What’s Happening In Australia’s Real Estate Market?
Now that we have a better understanding of what a buyer’s and seller’s market is, we can take a closer look at what’s happening in Australia. It’s important to take a broad look at the Australian market before honing in on Sydney.
That way, we get the full picture of the real estate market. Over the past few years, Australia has been in the seller’s market. However, there’s an indication that buyer demand is beginning to gradually cool down.
This is due to the rising interest rates that often accompany a seller’s market. As a result, many potential buyers simply don’t have the money to put up with both high real estate prices and interest rates for loans.
So, many households are taking the wait-and-see approach. As a result, cities like Adelaide and Brisbane are seeing buying activity gradually slow down.
However, it’s important to note that this cooling effect is far from universal. As we’ll see, in major cities like Sydney, there are still more than enough interested buyers to go around.
Is Sydney Real Estate a Buyer’s or Seller’s Market?
Bad news for interested home buyers: the Sydney Australia real estate market is still very much in the grips of a seller’s market. This is due to both the prestige of the city as well as the fear of missing out (or FOMO) for many buyers.
However, regardless of the reason, many experts predict that growth prices will reach double digits in one year. The good news is that this demand isn’t ubiquitous.
It often only refers to Syndey suburbs found in the inner and middle ring, as well as beachfront properties. That means certain suburbs aren’t currently in demand.
Now, whether or not anyone wants to live in these areas is up to the buyers. If homeowners don’t mind living in the outer ring suburbs, then they may be able to find some properties below market price.
In addition to this, many agents are finding that the demand for apartments in Sydney is gradually declining. Just remember that below market price is still quite expensive in Sydney.
Is That Expected to Change Anytime Soon?
Most areas around Sydney have been experiencing growth, while other areas have stagnated. So, can we expect this to change anytime soon? Well, if the rest of Australia is any indication, then yes, we can.
The reality is that real estate growth can only continue for so long. Eventually, either affordability problems or new housing options will slow growth.
In Sydney, we can expect certain areas, like the outer rings, to enter a buyer’s market soon. That being said, this market likely won’t extend to certain suburbs that will always be in high demand, like beachfront properties.
Where Is the Best Place to Buy a House In Sydney?
The best suburbs in Sydney will ultimately depend on your wants and budget. For example, if you work in Sydney, then you might want to be close to your work.
The good news is that almost all of the suburbs in Sydney have a great walkability score. However, if you’re like most people, then your budget will likely dictate which home can be available.
If you’re on a budget (don’t have millions of dollars to spare), then avoid expensive suburbs like Darling Point, Bellevue Hills, and Vaucluse. Instead, look for the more affordable suburbs like:
- San Remo
Or, maybe you’re looking for the suburbs that have experienced the greatest change in value over the years? In that case, stick to suburbs like East Ryde, Davistown, and Gledswood Hills.
All of these areas experienced a large annual change in the past year. Still not sure which suburb is right for you? If so, then make sure to check out this guide about the best suburbs.
Appreciate Learning About Sydney Real Estate? Keep Reading
We hope this article helped you answer the question, Is the Sydney real estate market a buyer’s market? As you can see, Sydney, and most other major Australian cities, are still in the midst of a seller’s market.
However, many experts believe that will change soon. So, make sure to keep your eye on listings for when the market finally shifts.
Did you learn something about this topic? For more real estate content (and more) make sure to keep exploring our website.