Is there a silver lining to the news that Sydney house prices continue to rise?
The average Sydney house price has reached its highest point ever and now sits at over $800,000. What a scary number, it seems like so much money! Times have certainly changed since our parents bought their houses on a $20,000 annual salary and were able to pay them off over a decade or even less if they were savvy with their pennies.
It is bad news for buyers that the average is actually more like $811,000, and that it increased from $787,000 just three months earlier. Also, if you go back just one year, house prices were sitting at an average over one hundred thousand dollars lower than they are now. The lower north shore has been one of the best performers, with 4.4% growth since the start of the year, according to recent reports.
It seems extreme but the main reason for this is a strong recovery after the GFC seriously slowed growth and even sent it backwards in the top end of the market. It was all doom and gloom for vendors for a while there, but now they’re the ones rubbing their hands together and seeing dollar signs.
If you’re a buyer though, you’ll probably be keen to hear some good news, which we can always dig out from underneath the attention grabbing headlines. So what I’ve got for you is the news that shortly after the announcement that house prices are on the rise again came word from the Commonwealth Bank that they’d created the market’s lowest five year fixed rate home loan – a slight 4.99%. Not to be left behind, some of the other banks, including Westpac and NAB followed suit, and smaller lender Mortgage Choice went a teeny bit further and announced the same loan at a 4.97% interest rate. Those are rates that our parents would have only dreamed of, especially twenty years ago when they sat at over ten percent.
It’s an interesting time to be shopping around for a home loan or even refinancing your existing loan. A call to your bank or mortgage broker is well worth your time, to discuss how you can lower the overall cost of buying one of those $800,000 properties and maybe even have it paid off before the kids leave home.
A buyer’s agent can help you find the right house in your price range. For more information contact Amanda On My Side.