Updated: Aug 20, 2020
Our Willoughby City Council property study analyses every residential property sale since 2004!
Sydney’s property market in 2019 was a tale of two halves.
As 2019 commenced, Sydney property was struggling.
* Mortgage approvals: were delayed or denied and mortgages were dearer. Conditional approval had plummeted from 2/3 loans in early 2018… to 1/6 loans in early 2019;
* Negative Gearing: (which had driven-up property prices) was evidently terminal… Bill Shorten was to be the next PM. Odds of a Labor victory were $1.14, compared to the Coalition at $5.75; and
* In terms of property, buyers were still around, however most were acting with caution. This translated into poorer results across the industry, with low auction clearance rates and soft prices – particularly in some market segments.
The first six months of 2019 were cautious, restrained, and quiet.
“Buyers were still around, however most were acting with caution!"
And yet, by June: ScoMo had won; the credit squeeze was over; and the RBA was cutting rates! Buyers got excited again; however, there was nothing to buy! So, this cocktail of perfect demand conditions and low supply translated into FOMO (Fear of Missing Out), which drove-up auction clearance rates and in turn, property values!
We’ve recovered two years of losses in a few months!
“Right now, selling conditions are about as good as it gets!"
You can’t see it in the data yet (because we examine the entire year of 2019), however sales in the final quarter of 2019 affirm that property prices are back to their peak. We’ve recovered two years of losses in a few months! The upshot… right now, selling conditions are about as good as it gets!
How long will this Bull-Market run? Most experts are predicting a strong first half 2020, slowing as stock-levels rise in Spring.