A strange thing has been happening at open homes across Sydney of late.
This time last year, there would be dozens of people at inspections – and there was usually only one inspection ever held because there would be multiple offers on the table after the very first open home.
Fast forward to now and we are sometimes the only people at inspections at all!
Not only that, but there are fewer and fewer auctions being held as vendors recognise that the market has cooled and decide to sell their properties via private treaty instead.
Indeed, another big difference to last year is that listings often have prices on them now, too.
Of course, these are all on-the-ground signs that market conditions across Sydney are changing, which is not only refreshing, but also creates opportunities for home buyers keen to secure a real estate holding of their own.
Every professional buyers’ agent and qualified property investment adviser understands that buying a property requires a long-term ownership mindset.
No one, whether investor or homebuyer, should purchase a property hoping to reap the capital growth rewards of a rising market.
This means that the best time to buy is when it suits you personally and financially – regardless of the market conditions at the time.
With the Sydney market cycle clearly transitioning into softer conditions, prospective homebuyers have the opportunity to purchase homes for a more affordable price than they could last year.
This is because there are fewer buyers out there, but also due to the fact there are more listings available as well.
According to SQM Research, new property listings (less than 30 days old) in Sydney jumped by 4.1 per cent in March this year and, compared to March last year, the totally number of property listings in Sydney have increased by 5.5 per cent.
A further sign that Sydney’s market has moved into a slowdown phase is in the latest price growth figures from CoreLogic’s Home Value Index for March, where Sydney’s was showing the most significant slowdown, falling from peak growth of 9.3 per cent in the three months to May 2021, to 0.3 per cent in the first quarter of 2022.
According to CoreLogic’s research director, Tim Lawless, the sharpest slowdown has been in Sydney, where advertised supply is trending higher, and sales activity is down over the year.
So, all the signs are showing that the time is ripe for Sydney homebuyers this year, given there is less competition, more listings, and reduced asking prices.
Unfortunately, some people will use these changing market dynamics as a reason to not proceed with their homebuying plans, while some others may use the upcoming Federal Election as an excuse to not purchase a new home – even if they need one.
However, it is market moments like these that should excite buyers rather than convince them not to take action at all.
Sydney homebuyers must always a adopt a long-term mindset and never be put off because the market appears to be changing.
In fact, it is those home buyers who transact this year, rather than last, that are more likely to achieve superior results over the years because they are not buying at the peak of the market cycle.
As I always say, the best time to buy a home is when you are emotionally and financially ready to do so – because fruitlessly trying to pick the “perfect time” to buy usually results in people doing nothing at all.
It’s vital to always remember that to own a property, you do have to buy one – with market conditions mostly irrelevant for homebuyers with a long-term view.