The NSW property market is providing opportunities for buyers with more stock, little competition and room to negotiate. Buyers are back in the driver’s seat – here’s our quick overview of the CoreLogic housing market update.
Sydney property market
Sydney dwelling values have dropped 6.1% over the last 12 months to March 2018.
Regional areas once resilient are showing more challenging conditions.
Stock levels are now 22% higher than a year ago.
Sydney properties are taking longer to sell – 52 days on market – an uplift of 15 days from a year ago.
Vendors discounting by 6.5% before selling.
Buyer activity has reduced by 18.5% over the past year.
Credit and mortgages
Housing credit growth is at the lowest level in almost 5 years with investor credit growth growing at the slowest pace on record.
If credit tightens further, the property market will also tighten.
Cost of housing debt remains at levels not seen since the 1960’s.
Buyer activity
With credit less available, buyers have thinned out.
Overseas migration is down, with NSW seeing a reduction of 13,100 over the last 12 months.
Net interstate migration to NSW is down 20,506. Compared with Queensland which has seen an increase of 24,004 over the last 12 months to March 2018.
With less people, there is less demand for property.
Residential construction in NSW is close to a record high. With a substantial pipeline of new development in NSW and credit less available the could create some issue for the market particularly for those developments that a targeted at investors.
Economic conditions
Whilst the housing risk profile is heightened, economic conditions remain healthy and mortgage rates are set to remain low into 2020.
Employment growth is strong.
The property market is very much in favour of buyers, however access to credit has tightened, so working with an experienced mortgage broker is the best way to assess all your lending options without running the risk of applying directly to a bank and being declined.
Speak with one of our Sydney mortgage brokers to find out what mortgage options are available.