Real Estate bubbles are blown and burst by the media just about every month. And certainly there is a lot of data collected and analysed that supports the pendulum swing of property prices from high to low and back again.
As a home buyer, investor, or vendor, the ebb and flow of the market is inevitable – the smartest strategy is to look at your end goal, and try to make your move at exactly the right moment. The old wisdom of buying when low and selling when high is a watertight theory if you are simply looking for capital gains. However more complex plans involving negative gearing and tax advantages require a deeper understanding of where the market currently is in relation to where it will move to next.
The hype involved with a property boom can help inflate the boom further as people jump into an investment – often at the wrong time – adding further to the demand side of supply and demand. This can often precede a dip, or correction in the market with real estate reports declaring a bust or the ‘end of the boom’. Right now we are experiencing a lull in prices, which is normal pre the spring market, making it a great buying period.
In Sydney, unprecedented rental demand has kept the market relatively buoyant. Coupled with low interest rates, investor confidence is high, and this has been a key market driver over the last 12 or so months.
While December 2013 saw the year finish on a very strong note, the Autumn quarter has slowed considerably and more properties are being taken to auction rather than sold by private treaty as vendors look to drive prices up with competition.
Whether you are buying or selling, a buyers’ agent can help you find the right property for your needs even as the market moves from one speed to the next.