Sydney, being Australia’s de-facto capital is naturally one of its most expensive places to live. According to the Australian Bureau of Statistics, Sydney’s median house price for the March Quarter of 2022 was $1.2M. From March of 2021, the New South Wales median house price has jumped nearly 30%.
On September 6, 2022, the Royal Bank of Australia once again raised the national cash rate from 1.85% to 2.35%. The October RBA meeting is predicted by the Australian Stock Exchange to rise once again to 2.85%. While it may have no direct impact on Sydney’s homeowners of today – the homeowners of tomorrow and the future in the city are likely looking at a higher interest rate for variable rate mortgages. Which, considering the median household price already sitting at one and a quarter million, can’t be a good thing for affordability.
Those with the cash are keeping their wallets closed and their houses off the market this winter, as sales of under one million dollars was just over 33.6% for houses specifically in Sydney this July, according to CoreLogic Data. Meanwhile, for all units in Sydney, the total number of sales under one million dollars was 73.6%.
COVID-19, inflation, and the exorbitant cost of living has many Australians feeling the bite and first-time homebuyers are seeing a much different housing landscape than they did, at least in terms of finances, since pre-COVID times. To illustrate, a home sold by Ray White Touma Group had listed for $1.15M in 2019, sold to a first-time buyer for a cool million – this home was a two-bedroom, one-bathroom terrace dwelling.
Sydney, like many Australian cities is feeling the pinch of the national (and indeed international) housing crises – this is being exacerbated by those who are reticent to sell their homes due to the prices plummeting and the lack of new housing being built – despite payments being made – as companies are going bust and houses sitting incomplete.
The lack of available homes due to hesitant sellers, a lack of building companies in Sydney – rather, those that aren’t booked solid or have yet to enter insolvency and are able to complete the task requested – exacerbated by the lack of readily available and relatively-affordable building materials to begin with has left many Sydney siders feeling the pinch of a lack of adequate housing.
When the world’s largest makes a proclamation like, “Hey, your country’s housing bubble is going to explode and property prices are going to plummet by eighteen percent if that happens,” you should probably take note. American mega-bank Goldman-Sachs says that is exactly what’s going to happen.
House listings in Sydney are around 8% higher than they have been in previous years. It’s a buyer’s market in Australia’s richest de-facto capital – however, nothing is selling. This grim reality is set to continue for many Sydney residents looking to sell their home through the end of the year. Maybe it’s best for Sydney’s homeowners to stay be and homeowners-to-be, to be patient.
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