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Despite continued positive performance from the Sydney property market – with some suburbs smashing records – one real estate group says the fantastic run will inevitably slow down.
The latest data from CoreLogic RP Data reveals that Sydney property prices continued their upward trajectory, with a 3.9 per cent increase over the three months of spring.
Raine & Horne CEO Angus Raine said there are many forces currently driving the Sydney market.
“When analysing the real estate market, it’s never a case of 'one size fits all', and Sydney real estate is a fusion of hundreds of sub-markets with different price points, which are affected by many different factors such as interest rates, foreign investment, or self-managed super fund activity – just to name a few,” he said.
“That said, Sydney real estate has had a very good run since May 2012, and it’s undoubtedly due for a bit of a breather at some time.”
Despite the potential for a slowdown in activity, Mr Raine said there could be a rush to get into the market before 2014 comes to a close.
“Tuesday’s decision by the RBA to leave the cash rate on hold, combined with the availability of cheaper five-year fixed rate home loans, have the potential to get more people into the market before the end of 2014 and at the start of next year.”
Mr Raine also pointed to evidence from SQM Research that listings are down in the NSW capital by 8.1 per cent compared to November 2013.
“A lack of listings is proving a common theme in markets across Sydney, which could result in a rush of sales as buyers with a deadline look to bed down a new property before Christmas,” he said.
Raine & Hornesales agent Peter Diamantidis said the western Sydney market was showing no signs of a slowdown, with investors continuing to dominate transactions.
“We had the biggest November in St Marys in 25 years, and we smashed records left, right and centre,” said Mr Diamantidis.