25

May 2018

The Soft Landing We Had To Have

Lots of data out this week showing that the Government measures to curb lending and foreign sales has worked, and we are right in the middle of "the soft landing that we had to have."

  • CoreLogic reported that home prices in the five mainland capitals were either flat or slightly lower during May, with Melbourne and Sydney down by 0.4% and 0.2% respectively. Sydney home prices are down by 3.9% over the past year, the weakest annual outcome in over five years.
  • There are 27,000 properties currently for sale across the Sydney market, and that is 25% more than last May.
  • There were 49,000 sales in the first three months of 2018, compared to 52,000 early last year.
  • In March alone there was 16,950 property transfers, which is the quietest for four years, as buyers are taking their time to negotiate without the fear of missing out.

So with more stock on the market and less sales - should you be worried?

Well, if you are already a home owner, then do not fear - the market has never fallen below a previous low, and has always risen to a new high over the long term. And if you are buying and selling in the same market (at the same time), you should have a zero-sum effect as you will sell at a lower price, but also buy at a lower price, thereby cancelling out any serious long term impact.

But if you are a first home buyer or investor, it's like going to JB-Hi Fi where everything is on sale! If this is you - now is the perfect time to be doing your research and negotiating your way into a great deal.

Let us help you to secure a terrific deal on a new Sydney property. Our projects are all listed below, and there are more on the way.