Housing values will likely rise as the decline in property prices slows down and fundamentals align for a market recovery, said The Real Estate Institute of New South Wales (REINSW).
“The decline in property prices we have seen over the past year is likely plateauing. Market engagement evidenced, in part, by improved auction clearance rates supports that supposition. Purchasers who have been waiting for the market to bottom, now is a good time to be looking closely at where the market is headed over the coming months. With the election and Banking Royal Commission behind us, the recent RBA interest rate cut—and more cuts predicted—the fundamentals are in place for growth in property prices,” said REINSW CEO Tim McKibbin.
Markets were extremely favourable for buyers, as proportion of both Sydney and state-wide markets that experienced declining median sales prices increased.
Eighty-one percent of Sydney’s house and unit markets dropped median prices, resulting in an overall 2.7% fall in the city. Across New South Wales, 68% of house and property markets fell in median sales prices.
“If you’ve got your finance organised, now is the time to start looking in earnest. Conditions for vendors are beginning to improve. The full effect of the RBA interest rate cut is yet to fully kick in,” McKibbin said.