Predicted drops in house prices are expected to give buyers some real bargaining power this year, according to fresh analysis.
Property experts surveyed for comparison on website Finder’s cash rate survey predictions for February were also polled on their housing price predictions for the year ahead.
“Interestingly, experts predicted property prices in both Adelaide and Hobart to grow, so it could be worthwhile considering investment opportunities in these cities,” said Insights manager at Finder Graham Cooke.
Mr Cooke said these results show for those with deposits, now is the time that investors should be buying.
“A 6.3 per cent drop in Sydney would see average house prices dip a further $58,000, while a 6.6 per cent drop in Melbourne this time would mean a fall of more than $49,000,” Mr Cooke said.
“Remarkably, should these price drops eventuate as forecast, this would make Sydney and Melbourne property the cheapest it has been in four years.”
With buyers holding power in the current property market, Mr Cooke suggested that buying in a softening market paved the way for investors to negotiate to the estimated turning point.
“In other words, bargain for at least 6 per cent under the asking price in Sydney, or 7 per cent in Melbourne,” Mr Cooke said.