As we approach the end of 2024, the Sydney real estate market continues to experience dynamic shifts, offering both challenges and opportunities for buyers, sellers, and investors.
Christmas Rate Cut on the Horizon? There’s growing anticipation that the Reserve Bank of Australia (RBA) might deliver an early Christmas gift in the form of a rate cut. While the current cash rate stands at 4.35%, a Finder survey indicates that a rate reduction could be on the cards before year-end, potentially easing the burden on mortgage holders. Inflation is showing signs of slowing, which could pave the way for this much-anticipated relief.
Price Adjustments in Sydney and Melbourne In response to a cautious market, property sellers in Sydney and Melbourne have started lowering their asking prices. Sydney house prices dropped by 1.3% in the last month, while unit prices saw a modest increase due to heightened demand for more affordable options. With auction clearance rates falling below 70%, buyers now have more choices, but the market remains delicate as both sellers and buyers navigate these uncertain times.
Investors Make a Comeback Despite the uncertainty surrounding interest rates, investors are returning to the property market in significant numbers. May saw the highest percentage of new home loans going to investors in seven years. Attractive yields and good buying opportunities in the lower price brackets are key factors driving this trend. With strong rental income and the potential for future property value appreciation, now might be the opportune time for investors to make their move.
As always, our team is here to provide you with the latest insights and expert advice to navigate these evolving market conditions. Whether you’re buying, selling, or investing, we’re here to help you achieve your real estate goals.
Real Estate Newsletter
This article is a curated summary of various news stories from the past week, offering insights and updates on the real estate market.
