In recent months and years, the Australian housing market has been a challenging space, making it difficult for many buyers and homeowners to achieve the best possible value
Fortunately, signs show that the Sydney housing market will soon recover, outpacing recovery efforts in other states and territories. This may mean that buyers find it easier to get in to homes they love and make the most of the value they deserve.
Why is Sydney’s housing market expected to recover faster than markets in other capital cities, and what does this mean for you? Here’s everything you need to know.
Growth trends
After a year of being home to the country’s weakest capital city housing market, Sydney is now set for a year of growth.
In 2023, forecasts by the property research group predict Sydney price growth of between 5 and 9 percent, levelling out what was lost by a 7 percent fall in 2022.
Price growth will support homeowners to retain property value and even gain equity. Generally, housing price growth is viewed as a strong indicator of robust economy. This means that good things are in store the Sydneysiders.
Stabilising interest rates
It’s impossible to predict exactly what will happen in the Australian economy of the course of 2023. However, some economists are hopeful that the Reserve Bank of Australia will start to slow down with interest rate rises.
As inflation slows and interest rates begin to stabilise, homeowners will experience much-needed relief from mortgage stress, with this offering positive outcomes for the property market.
In Sydney, fewer rate rises will make it easier for people to gain equity in their homes. This could help to facilitate the development of a wealthier city, where housing stress could reduce and market conditions could return to a state of equilibrium.
Signs so far
Already, real estate professionals are beginning to see a change in the Sydney housing market, especially in the eastern suburbs.
In many ways, New South Wales led the country’s ailing housing market, but the market is a cycle. Sydney will soon begun to level out, with a healthier sales volume and fairer price points for properties.
One of the key benefits in Sydney is that the city has a high volume of properties across a wide range of value points. This allows for market entry across a variety of budgets and means that fewer properties sit on the market for long periods time.
While the Sydney housing market will likely remain competitive for buyers, it is hoped that the city will achieve greater balance between supply and demand for homes. This will allow homeowners to sell with ease while supporting homebuyers to purchase great properties.
What to expect
The Sydney housing market won’t be repaired overnight. Nonetheless, early indicators show that the market could experience positive trends this year. Whether you’re a current owner or a hopeful buyer, this is a good sign, as it means you’ll soon be a part of a healthy property market.
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