20 Sep 2013
You may have heard the news, house prices are going up… no wait, they’ve gone up… no, apparently they’re about to come crashing down? It’s difficult to keep up with real estate market trends, particularly when headline writers are so keen to jump on board with whatever is most likely to attract readers, rather than actually deal in facts and figures.
So here it is, the real story.
- Yes, the median Sydney residential price has gone up over the last 10 years. However, it has increased at an average rate of just over 2.5% per year, which is almost the same as the average annual inflation rate over the same period. When you look at it that way, Sydney prices haven’t actually increased at all in real terms over the last decade.
- While the number of properties selling in NSW seems to be on the rise, they’re still well below (20% below in fact) the figures we saw in the boom period between 1998 and 2003.
- Rental yields are relatively high, currently sitting at 4.61% for houses and 5.08% for units. The last time we saw a boom in Sydney, rental yields dropped below 2.5%.
- Generally boom periods are marked by an over supply of residential homes. 1998-2003 saw around 40% more new constructions; whereas, over the past 10 years new dwelling constructions have been on a steady decline.
While the future is unknown, it seems the NSW property market is not about to come crashing down any time soon. If you’re thinking of selling your Liverpool home, now is a great time to come and see our Professionals Paradise Realty Casula Real Estate team for a no obligation chat.