Thinking of selling your home? Looks like the boom in Sydney and Melbourne is over. We’ve dug through the latest news and found 4 things you need to know about the property market in 2018.
Recent news has many property owners in Sydney and Melbourne worried. It looks like the year-long boom is over. The AFR is even calling it the start of a ‘multi-year normalisation’. However, it isn’t all bad! We’ve compiled four key takeaways from recent property reports for you.
1. Hobart is now the only capital city with increasing home values
As the home values for most of the capital cities are going south, 2018 is a great year for Hobart residents. Hobart house prices continue to grow stronger with 3.4 per cent increase in Q1. Since last year, house values in Hobart have increased as much as 13%.
Looking at the historical performance for Hobart, it looks like 2018 will be a good year to take a profit!
2. Regional New South Wales and Victoria shows strong growth
The regional markets around Sydney, Melbourne, and Canberra remain popular and home prices continue to increase.
Unlike major cities, regional markets show robust growth and are predicted to continue performing well in 2018. Regional prices have been more reasonable in the first place and are hence less affected by the normalisation starting now. If we had to choose a place to be for 2018 these would be it.
3. Mid-range premium houses are unaffected
More conservative lending and weaker market conditions have led home sales in the more affordable and premium ends to struggle.
Houses valued less than $2.5 million are only getting one to two bidders at auctions, compared to three or more during the latest property boom. Meanwhile, houses in the $4 million to $6 million bracket are not doing so well with 2018 marking the first time premium house values dropping by almost 5%.
This leaves houses between $2.5 million to $4 million to be unaffected by market changes, however this price range is still unaffordable by most Australians.
4. Houses are taking longer to sell
In 2018 houses are taking longer to sell. However, if you live in Sydney, Melbourne, or Hobart, you are lucky: Days on market are still below the overall average of Australian capital cities—although Sydney and Melbourne are on an upward trajectory.
Hobart again takes the lead with an average of 28 days on market (even better than during Sydney’s boom times). Melbourne is not far behind (30), but Sydney has risen significantly since late 2017.
What are my options?
Looking at current trends in the market, you may start wondering about your home plans and how much of an impact will the housing market trends affect your home. To find the best option, we would recommend asking yourself two questions:
- Is this the best time to sell my home?
- How far will I be able to withstand the market changes in my area?
If you do decide to sell and want to avoid the uncertainty 2018 is bringing to Australian property markets, there is always Sellable: we guarantee your property’s sales price and pay the moment you move out.