Everyone we speak to at the moment has a lot of questions about the property market - what’s happening generally, when they should dive in and whether it really is the best time to purchase in the Sydney market. 

The property market we saw in 2020-21 was a generational property boom which was exacerbated by external factors such as COVID, so we can’t really use that as our baseline for comparison purposes.

Hindsight is a wonderful thing, and if we all had the hindsight to sell our property during the boom and then rent for 6-12 months and re-purchase during a market that is correcting itself, we would all choose that option. The financial benefit would potentially be huge and some people in the Sydney market have absolutely done that. 

Putting the 20-21 boom aside, the median house price at the end of 2019 in Sydney was $973,664 and the median unit price was $746,017. Midway through 2022 and our medium house price is at $1,110,660, with the median unit price sitting at $770,000. 

The current market is not dropping, it is still growing. Demand is more measured and with properties continuing to be supplied to the market and interest rates correcting the size of the loan that people are able to obtain, it is only natural that it will feel like the market is slowing. But a market cannot boom forever and if property data is measured over 20-30 years, you will see that these periods of growth and then slight corrections, happen almost in a cyclical fashion, with the longer term pattern being house price growth. 

What I always say to people is that property data tells us that in the average 8-10 year cycle, property is an investment. But the most important piece of information I can give is to purchase within your means and engage every professional you can to service you within those means. 

We get the best outcomes for our clients when we have the full picture.

Have a real estate agent who is working for you and knows what you are looking for, as a lot of properties never make it to the market. Have a buyer’s agent chasing down real estate agents for opportunities on your behalf. Have a lender who is going to give you honest and clear advice around what could happen to interest rates and have a plan for that. Also make sure that person can move swiftly if you ever need to change your loan or access equity if a great future purchasing opportunity becomes available.  

Having these resources at your fingertips is what is going to give you an edge, empower you in your decision making and potentially create savings by having professionals working for you and negotiating on your behalf. 

The people that make gains on property are those who get a foot in the door and go from there. They work within the current market and current means and by the time the next boom comes around, they have the stability and flexibility to make some bigger and faster purchasing decisions. 

To predict what is going to happen in the property market, we don’t need to look too far because Australia’s market follows some pretty recognisable traits that we see time and time again, and we have the economic climate and Government policy to support sustained property growth over the longer term.