It’s the one question real estate agents are asked everyday; “How’s the market at the moment?”
The answer depends on what your future plans might be. For example, if you are a property buyer you’ll be finding it tough at the moment. Prices are rising, competition is stiff and mortgages are getting more difficult to service as wages fail to keep up.
Many buyers give up in these circumstances deciding to wait until another day. But the risk with this strategy is that prices will probably continue to increase making it more difficult in the future.
If you are a property seller the market is great. Prices are rising, there’s plenty of buyers and it is very likely your property will sell quickly. But most sellers become buyers. And buyers are finding things a bit tough at the moment.
So, if you are thinking of selling, what’s the answer?
The local property sales market in Sydney will continue to rise steadily through most of 2015. There is no indication the Reserve Bank will increase interest rates in the near future – such a move usually puts a brake on the market. So, the gap between the value of the property you currently own and the one you would like to buy will continue to increase during 2015.
Here’s a quick example. If your property is worth $400,000 and the property you would like to buy is $700,000 the difference in price is $300,000, usually the amount your mortgage will increase when you buy.
If prices increase by 10% over the next year your property will go up in value to $440,000. However, the property you would like to buy will also go up – to $770,000. Now the difference in price is $330,000, creating an extra $30,000 added to your mortgage.
The best advice for those considering selling is to sell now. Don’t wait for prices to rise further. In addition, there’s no reason to think there will be a slow down at Christmas. We expect to be busy every day over the holiday period. You can take advantage of the current marketplace by calling our office today in Sydney on 4628 0033 for a wide range of property advice from our team of experts.