The topic of Sydney’s property bubble and it’s anticipated bursting date is fodder for much of the real estate news at the moment.
As the weather warms and the annual Spring price bounce heads back down, reports of lower prices, lower clearance rates and lower buyer enthusiasm are common. But where some see this as the harbinger of property doom, just as many people’s eyes light up at the prospect of cheaper houses and a more negotiable buyer position.
The net result of these two reactions is that the property market tends to steady itself and the balance of supply and demand stays the same – in a slightly softer market.
But the bigger question of ‘will the bubble burst’ is a matter of seasons and cycles rather than fads and gold-rushes.
The Sydney property market is geared to buoyancy in the Spring, and has been for decades. But what goes up must come down and spring is followed by the fallow Christmas period where most buyers and sellers pause and hope for a strong start to the new year. This can give the March/April period a bit of a bump in advance of the always-slow winter market. Around comes spring again and buyers, sellers, agents and the media all come out of hibernation and the market can get very hot indeed.
Trying to find the suburbs that are most immune to the fluctuation of the market is a futile exercise – the stability exists in the median of any suburb, rather than the suburb itself. The bulk of market demand will always mark the average price of houses in the area so even if the top of the market drops dramatically – in any suburb – there will always be demand in mid-range prices.
For buyers looking to move up, a down-turn create a lot of opportunity, and provided you don’t stretch your capacity to service your finance too far, you can snap up a bargain that is achievable and has good capital growth potential.
While the media tends to sensationalise the dips and rises of the Sydney property market, the seasonal nature of the supply and demand, price and clearance rates shows Sydney to be a Blue Chip city for any property buyer who is comfortable with long-term investing or the discerning home buyer who is looking for solid capital growth.
Amanda On My Side has seen many Sydney property seasonal cycles and can help you find the right house at the right price, no matter what the media are saying! Contact her today.