{"id":2935,"date":"2022-06-30T02:40:59","date_gmt":"2022-06-30T02:40:59","guid":{"rendered":"https:\/\/royabhishek.in\/urbanbuyer\/the-sydney-regions-which-have-reached-their-price-peak\/"},"modified":"2022-06-30T02:40:59","modified_gmt":"2022-06-30T02:40:59","slug":"the-sydney-regions-which-have-reached-their-price-peak","status":"publish","type":"post","link":"https:\/\/royabhishek.in\/urbanbuyer\/the-sydney-regions-which-have-reached-their-price-peak\/","title":{"rendered":"The Sydney regions which have reached their price peak"},"content":{"rendered":"

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Soaring house prices in New South Wales in recent years have provided homeowners and investors with the quickest and sharpest equity boost in history.<\/p>\n

A year ago, house prices were rising 46 times the current pace, and at the same time unit prices were also increasing \u2013 this indicates that Sydney<\/a>\u2019s steepest upswing on record has ended, swinging power back towards buyers.<\/p>\n

Sydney house prices rose 40%<\/a> from the trough in June 2020 through to March 2022, providing the steepest upswing on record, Domain\u2019s inaugural NSW Spotlight report<\/a> reveals.<\/p>\n

\"Chart01\"

That\u2019s an enormous increase in a very short period of time and equates to a $708 daily increase throughout the pandemic.<\/p>\n

Usually, in an upswing, we\u2019d see greater rates of house price growth over a longer period of time.<\/p>\n

But the report also reveals that there are signs of reprieve for buyers on the horizon, with Sydney\u2019s price growth rate experiencing one of the most significant slowdowns<\/a> of all capital cities, due to flattened house prices and declining unit prices.<\/p>\n

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Sydney\u2019s housing market is now technically entering into a downturn with many market indicators weakening despite overall house prices pushing marginally higher during the first quarter of 2022.<\/p>\n

And the report explains that as per historical standards, the premium price-point is leading the price cycle direction as 6.5% was shaved from house prices over the first quarter of 2022.<\/p>\n

The report says:<\/p>\n

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\u201cIt\u2019s clearly evident in the most expensive areas of Sydney with the median house price falling 8.5% in the Eastern Suburbs since its peak in June-2021, and it was the first Sydney region to hit a price peak.\u201d<\/p>\n<\/blockquote>\n

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This has wiped $315,000 off of the median house price but this is still nothing compared to the $927,000 gained in the 12 months leading up to its price peak.<\/p>\n

And it\u2019s not just the Eastern Suburbs which has reached their peak or started falling from it.<\/p>\n

Sutherland, Ryde, and Parramatta all also reached their house price peak in December last year, having since fallen 5.5%, 4.9%, and 4.25 respectively.<\/p>\n

The City & Inner South and Northern Beaches also look to have peaked in December 2021, falling 2% and 0.5% respectively since.<\/p>\n

Meanwhile, the data shows that house prices have peaked in Baulkham Hills & Hawkesbury, Blacktown, Central Coast, Inner South West, Inner West, North Sydney & Hornsby, Outer South West, Outer West & Blue Mountains, and the South-West regions.<\/p>\n

Prices have peaked, now what?<\/span><\/h2>\n

The last significant downturn was during 2017-19 when Sydney house prices fell 13.8% from peak to trough, Domain\u2019s NSW Spotlight Report points out.<\/p>\n

Interest rates weren\u2019t rising at the time but it became harder to get a loan and less credit was\u00a0available for borrowers.<\/p>\n

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But this time around things are different – interest rates are rising<\/a>, putting pressure on housing affordability at a time when the cost of living is soaring<\/a>.<\/p>\n

The report explains:<\/p>\n

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\u201cThe speed and scale at which Sydney prices soften depend upon many factors, however the downturn will be largely shaped by how high and quickly interest rates go up, and how high inflation reaches.\u201d<\/p>\n<\/blockquote>\n

And although interest rates are important, they are not the only factor influencing housing prices.<\/p>\n

Tax settings, banking regulation, population and income growth, and the responsiveness of new housing supply to growing demand all play their part.<\/p>\n

And the higher level of debt in the current market means that the RBA won\u2019t need to increase rates as much as it has in the past in order to cool inflation.<\/p>\n

\"Sydney\"<\/p>\n

The bottom line<\/span><\/h2>\n

While timing the property market<\/a> is important to some extent, it is definitely not the key to investment success.<\/p>\n

There\u2019s a saying in property circles that goes:<\/p>\n

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\u201cWhen was the best time to buy property?<\/p>\n

20 years ago!<\/p>\n

When is the second best time \u2013 today!\u201d<\/p>\n<\/blockquote>\n

In other words, whether prices have peaked or not, you buy when you can afford to and when you are ready to.<\/p>\n

It\u2019s important<\/strong> to recognise that times like this create tremendous opportunities, a window of opportunity is opening up now that smart property buyers can take advantage of.<\/p>\n

Now is the time to buy quality assets and remember there are markets within markets \u2013 \u201cA-grade\u201d properties are likely to hold their values well.<\/p>\n

A few more tips:<\/strong><\/p>\n