Most people believed that it was about time that the prices of housing in metropolitan suburbs in NSW have finally begun to slow but now reports have shown that the median price of housing in Sydney has begun to decrease dropped 3.1% in the December quarter of 2015 the first drop since 2012.
It wouldn’t come as a shock to many in the industry, it was unprecedented how high prices had risen since 2012 in that 3 years period the price increase had been 52.6% overall. And despite the 3.1% decrease in the final quarter 2015 still had an over increase of 14.8%.
“It’s not a buyers’ market right now”. That is a term that had become a lot more common in the last 2 or so months. Why is that so? Some might ask it’s actually an often overlooked fact. Everyone who is going to buy a house already has. With prices so high right now people have been saving their money for when the inevitable price drop occurs which means that the price must drop you can’t have high sales prices and no one buying.
Investor loans will likely decrease too in the coming 12 months. The higher interest rates coupled with the higher housing prices that occurred in 2015 will make it either difficult for first home buyers or just poor sense to experienced investors.
Now all of this doesn’t mean that the prices of housing is going to plummet it just means that the unprecedented growth that Sydney has experienced in the last 3 years will just slow down to a more “manageable” pace.