Don’t get greedy on prices, property sellers warned

Sellers have been advised to keep property price expectations in check amid a new year surge in listings.

Homeowner George Penza outside his western Sydney property. Picture: Sam Mooy

Sellers have been advised to keep property price expectations in check amid a new year surge in listings.

Despite quarterly price increases in Sydney and Melbourne of more than 6 per cent, and forecasts of double-digit rises in 2020, national real estate network The Agency expects growth to be less dramatic.

The Agency’s chief executive Matt Lahood said listings would increase as consumer confidence grew and prospective buyers became comfortable with low interest rates and easier lending.

“While there have been a range of reports released citing large house price growth in 2020, we foresee a steady market with modest price growth,” he said.

His comments came after property data analyst SQM ­Research predicted Sydney and Melbourne prices could climb by as much as 14 and 15 per cent respectively over the next year.

In the last quarter, prices ­rebounded in Sydney (up 6.2 per cent to a median value of $840,072) and Melbourne (up 6.4 per cent to $666,883), while Brisbane (up 1.8 per cent to $497,491) and Adelaide (up 0.9 per cent to $433,845) have ­experienced subdued growth.

The national market has bounced back in recent months after hitting the bottom of the downturn in June, with prices increasing in most cities by 1.7 per cent in November, ­according to CoreLogic RPData figures.

But The Agency says low consumer confidence following the downturn meant homeowners had been hesitant to list properties, which had the flow-on effect of increasing prices.

Chief auctioneer Thomas McGlynn said a fear of missing out had gripped the market as it improved over the past couple of months.

He predicted buyers in 2020 would be more likely to keep their cool and seek a good deal.

“It’s a good time to sell, but sellers who are fair with their price expectations will engage more buyers and create even more competition, leading to a potentially higher sale price,” Mr McGlynn said.

The nation’s housing market has bounced back in recent months after hitting the bottom of the downturn in June, with house prices increasing in most cities by 1.7 per cent in November, according to CoreLogic RPData figures.

Couple George Penza and Jane Luigia, both 79, reckon their five-bedroom house in the outer west Sydney suburb is worth every penny of the $1.1 million price tag.

“I’m realistic, I know what went into it because we built it,” Mr Penza said.

National residential property listings increased by 6.3 per cent in November, according to SQM Research, which matched the annual decline of 2018.

Sydney property agent Billy Couldwell said he would recommend homeowners looking to sell list in January before the market becomes crowded.

“My advice to vendors looking to sell in this current market would be to be the first cab off the rank and have their home go ­online during the second week of January,” he said.

For investors, Perth has been flagged as the market to watch, with rental yields growing on the back of high demand.