Just when experts and the media predicted a lull in Sydney property market growth, now comes talk of the market heating up again.
So what’s the Sydney property market forecast for 2017? And what will it mean for homebuyers seeking a slice of the property pie?
The official Sydney Property Market Forecast for 2017
To borrow a phrase from the Reserve Bank themselves, Sydney’s property market is growing at a “brisk” pace.
“What we have noticed in very recent weeks is an acceleration, particularly in the Sydney housing market,” observed new RBA governor Philip Lowe back in early November. “Our view is that this acceleration will continue, it will go well into 2017.”
On top of that, the latest property price indices from CoreLogic, released last month, showed residential property prices rose 0.5 per cent nationally over October and 7.5 per cent over the past year, with stronger gains in Sydney, Melbourne and Canberra.
How has the US election changed the Sydney property market forecast? And how can homebuyers move forward in 2017?
Economists say that home buyers can expect a tougher, more expensive mortgage market for next year. Rate rises have already begun, with pretty much every lender raising mortgage interest rates by up to 60 basis points.
This is all due to the economic changes in the US after Trump’s election in November, which has affected the global market.
With all of this in mind, now’s the time to start planning ahead. Start off with how much you’ll need for your home loan deposit, and how to improve your credit score for an easier, faster mortgage approval process.
Less foreign investors to compete with
After the US election in November, the media predicted a huge influx of US homebuyers in the Sydney property market. And as the rule of capitalism dictates: when demand goes up, supply falls short, and prices rise.
However, major banks tightened lending to overseas investors earlier in the year. The NSW government has also introduced a special stamp duty for foreign investors. Both of these are huge deterrents for international investors, which sees less of a demand from overseas homebuyers. For now, it’s safe to say that the international market’s mass exodus won’t be responsible for increases in Sydney property prices.
The best suburbs to buy in Sydney
The Sydney property market forecast from experts and enthusiastic house hunters? West is best. Think Blacktown, Penrith and Emu Plains.