What type of market is occurring in Sydney?

Is-the-market-going-to-favour-buyers-or-sellers-_157_6007778_0_14102527_300When on the lookout for real estate in Australia, the type of market you search within is crucial. Buyer’s markets, seller’s markets and balanced markets occur depending on the different levels of supply and demand, and can shape affordability and price rises as a consequence.

Working out where the buyer’s markets exist can aid you significantly¬†when purchasing a property, just as waiting for your area to become a seller’s market is great when you are a vendor. So which is occurring in Sydney at the moment?

Taking it to extremes

The Commonwealth Bank and CoreLogic have joined forces to produce the Home Buyers Index (HBI), which details real estate markets right across the country. For the quarter ending in January 2015, the market shifted slightly towards sellers on a national scale. However, breaking it down between states and suburbs, there are both extreme buyer’s and seller’s markets found across Australia.

For example: Queensland, Northern Territory and Western Australia were all real estate markets that favoured the buyer, where supply outstripped demand. This allows people to secure lower prices at the negotiating table. An extreme version of this occurred in Tasmania.

New South Wales, Victoria and South Australia were all balanced markets. But breaking it down further, you find the extreme selling markets that are likely driving up prices.

Selling in Sydney

Sydney scored a 5 in the HBI, which is the highest rank for a seller’s market – extreme. This means vendors can charge a premium for their property and still make a sale, due to heightened demand created by supply issues.

Blacktown, Inner Sydney and outer areas in the west and southwest were identified as particularly strong markets for vendors, and could yet offer opportunities to anyone looking at buying a property.

A recent Housing Industry Association released indicated that multi-unit approvals were still on the rise, which offers a great opportunity for anyone interested in making an investment. Units are a cheaper purchase than a regular house, and RP Data statistics indicate that prices are still on the rise.

With this in mind, seeking out property in a seller’s market could be a difficult but ultimately rewarding move. It’s the sort of strategy that requires strong input from professionals, which is why anyone looking to get into the market – especially when it’s against them – should contact their local agent.

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