Home buyers urged to capitalise on lower prices while they still can
Buyers still have a chance to snag homes at well below prices being paid two years ago, but their window of opportunity could be closing due to recent market changes.
Sydney’s housing market is set be reawakened, with interest rate cuts presenting ideal conditions for first home buyers and upsizing families.
The Reserve Bank’s landmark decision to cut the cash rate to the lowest level since the 1960s would boost housing demand, economic experts said, given new buyers stood to save an average $700 a year in repayments.
Increased demand would stop prices from falling but would not drive another boom due to a weakening economy, the experts said.
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The market would instead enter a much-needed period of stability after years of boom to bust conditions, which meant buyers and sellers would get more certainty about pricing.
“It will be a flat market, not a rising one,” My Housing Market economist Andrew Wilson said. “A flat market … is good for everyone.”
Buyers also have a chance to snag a home at well less than the prices being paid two years ago, considering Sydney’s median home price has fallen nearly 15 per cent since July 2017, according to CoreLogic.
Realestate.com.au chief economist Nerida Conisbee said the market was showing signs of “bottoming out” and would be particularly favourable for upsizers.
Families looking for larger homes were hurt during the boom — even if they sold for a high price they struggled to buy their next one, she said. During the downturn, their next home was often cheaper but they had to sell at a discount.
“In a falling market, not a lot of sellers list and buyers sit on the fence … there’s now an opportunity for buyers to get into the market while prices are down,” Ms Conisbee said.
CoreLogic head of research Tim Lawless said lower rates wouldn’t be the only stimulus in the market, saying recently announced moves to end the credit squeeze and the return to a Coalition government would “boost confidence”.
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Originally published as Home buyers urged to capitalise on lower prices while they still can