Sellers win out in Sydney, buyers to look further out

x_157_81455_0_14101009_300Both property buyers and sellers have something to take away from the recent Home Buyers Index (HBI) released by Commonwealth Bank and RP Data.

While the national housing market has moved from a balanced one in May to one favouring buyers in August, Sydney has remained a strong market for sellers. The last three times it has been measured Рwhich includes May 2014 and August 2013 РSydney has scored a 4 on the HBI. This puts it above the statewide HBI of 3.

The HBI is measured by looking at the ratio of houses being advertised for sale to the number of housing loans being committed by Commonwealth Bank. A score of 1 means an extreme buyer’s market, 5 makes it an extreme seller’s market, while 3 is a balanced market.

In fact, Sydney was listed by the report as being the best seller’s market in the entire country, edging out Melbourne for the top spot. Property owners in the Harbour City might want to at least consider the idea of putting their real estate on the market, as the returns they could net at the present time could be quite significant.

Some of the Sydney areas particularly good for investors at the moment include Blacktown in the west, the eastern suburbs and inner Sydney, which has become more favourable to sellers since last year.

It wasn’t all bad news for buyers in Sydney, however. The report notes that conditions have been more favourable for buyers over the preceding quarter. Still, Lyn Cobley, Commonwealth Bank’s executive general manager and head of retail products and third party banking, had some words of advice for those shopping in Sydney.

“With market conditions in Sydney and Melbourne continuing to be challenging for prospective home buyers it could be worth considering properties in outer suburbs where conditions are typically more balanced,” she said in an October 11 release.

It might pay to closely monitor the Sydney housing market over the next quarter to see if things continue down the same trend, or if some adjustments start to take place.

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