The latest figures from home value tracking company, CoreLogic, confirm that the heat is coming out of the Sydney real estate market. The company’s figures up to 31 May show a 1.3 percent drop in property prices across houses and units in Australia’s largest city.
According to real estate agent Graham Ball, Principal of Graham Ball Estate Agents, powered by Ozway Realty, there are some clear trends starting to emerge in the Sydney property market. Quoting CoreLogic’s Director of Research, Tim Lawless, Graham said we are starting to see a slowdown in the pace of capital gains, a fall in housing transaction volumes and a rise in mortgage rates. “Each of these is contributing towards dampening the Sydney housing market,” he explains.
“Another factor putting the brakes on the housing market is banks putting the ice on new customers taking out interest-only loans,” says Graham. The Australian Prudential Regulation Authority wrote to banks at the end of March asking them to tighten their lending practices on investor and interest-only loans. “This pressure is now starting to find its way through the property market,” Graham explains.
However, Graham agrees with leading real estate commentators and pours cold water on some alarmist media reports that the property market is heading for a crash. “It’s important to note that May is historically a weaker month in the annual real estate cycle, plus we’re only looking at a relatively short period of lower figures.”
Graham has serviced Western Sydney’s Wetherill Park and Fairfield for over two decades and he has seen property cycles come and go. He argues that very strong growth periods – such as the boom that has rolled across Australia in recent years – are regularly followed by a level of correction.
“This can last for up to two years,” he says “and values can dip slightly during this period by single digit percentages. There’s nothing to indicate that this current slowdown should be any different to property cycles we’ve experienced in the past, both with houses for sale and houses for rent.”
Graham and business Director, Rivan Bahno, have a great reputation in Wetherill Park and surrounding Western Sydney suburbs, with many repeat customers. They present houses for sale and also offer rental properties.
For anybody looking to buy or sell real estate in Wetherill Park or Fairfield, get in touch with Graham, Director Rivan Bahno, or any of the team. Their office is at Suite 1, 1183 The Horsley Drive, Wetherill Park. Or you can call them on +61 2 9609 1177 or visit their website www.ozwayrealty.com.au/offices/wetherill-park