Daily Archives: January 8, 2018

CoreLogic: Home Prices in Sydney May Further Decline in 2018

SydneyThis year could be a good time to buy homes in Sydney, as residential real estate prices are expected to fall around 7 per cent, according to CoreLogic.

The real estate firm based its prediction of lower prices in Sydney from results in December 2017, when prices fell nearly 0.9 per cent. A median-priced house in the city costs more than $1.05 million, while the median cost of an apartment amounts to more than $774,124.

Price Drag

The price slowdown may even continue until 2019, suggesting that the market has reached its peak after booming in recent years, said CoreLogic head of research Tim Lawless. Since peaking in August 2017, the housing market in Sydney has recorded falling prices, he added.

Several other housing experts predict that price depreciation for homes could drop by as much as 10 per cent. This benefits those who plan to buy their own homes, although take note that investors and homeowners may decide to hold on to their properties due to declining prices.

Market Trends

Some sellers will not just defer a listing on the market because of low prices, but also to avoid paying high stamp duty on property transfers worth around $50,000 for median-priced homes. These homeowners usually comprise growing families, who want to offload their house to buy a bigger one.

Instead, a possible trend among upgraders in 2018 involves renovations amid low-interest rates for financing housing improvements, according to ME Bank head of loans Patrick Nolan. As some households decide to stay put, their residential projects will cause more business for companies that offer waterproofing supplies in Sydney.

Conclusion

Homes in Sydney might become cheaper in 2018, but a lack of supply presents challenges to buyers. For homeowners that still plan to sell, renovations will help in boosting the value of your property.