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Is it better to be a seller than the buyer at the moment?

I was reading this article from Terry Ryder and when talking to some real estate agents recently, they have all said that the market is not as hot as it once was. Auction clearance rates have reduced this month, indicating that the selling frenzy is tapering off somewhat.

Terry Ryder has said of the current market in Sydney:

“The time to buy in Sydney to achieve maximum gain from the recent recovery was late in 2012. Most of the Sydney locations I was recommending back then have experienced capital growth between 15% and 20% in the past 12 months. That won’t be repeated in the next year, although there will be further growth.”
December quarter of 2014 was crazy for people selling properies, as there people that were selling my house fast, and almost a soon as the property was listed they were being sold.

APM says that Sydney property has never been more expensive with the median house price at $782,973 and the median apartment price hitting a new high of $547,053.

Is the increase in prices in Sydney because there is improved confidence or because of a lack of stock, or both?

Property experts have said for some time (in particular in December quarter in 2013, that the huge rise in prices was due to increase capacity of overseas investors to buy houses in Australia, the low interest rates, and that the lack of stock.

As of the 1st quarter 2014, House prices and the market have showed signs of slowing possibly due to the slowing of the Chinese economy, the perceived negativity of the outcome of the Federal Budget, and a possible rate rise soon. Time will tell if rates rise, or the Federal Budget will affect us all negatively…

Sydney Market Wrap

Growth rates in the inner city of Sydney have declined and this often has a ripple effect on Sydney’s outer suburbs, where the majority of the high growth rates have occurred, due to greater affordability and more stock on offer. The city and east had the biggest drop according to APM Monitors, with its December growth of 8.9 per cent slowing to 1.7 per cent this year.

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Some experts including Terry Ryder feel that the rich vein of growth in Sydney will be concentrated around the infrastructure plans of the state, in particular in the North West of Sydney and near the South West Rail Link and the new Badgery’s Creek Airport.

Potential Areas for Growth in 2014

Some Economists have been saying that when the city areas start to slow in their growth, the outlying areas and regional areas benefit with greater demand for houses and growth due to these areas being more affordable, for example, Newcastle, Dubbo, Tamworth.

Often if Sydney is experiencing a slower rate of growth after a boom, then Melbourne and Brisbane are not far behind. Maybe looking into areas such as Brisbane, the corridor between Brisbane and the Gold Coast, Melbourne outer areas could yield some bargains at reasonable prices.

So the smart money to invest, according to the experts, is to concentrate near the main infrastructure projects in the metropolitan areas in Sydney and maybe in regional areas, or in Brisbane / Melbourne.

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Kind regards,

James