Property expert John McGrath says he is surprised by reports claiming the Sydney property market is changing to favour buyers.
The founder and CEO of McGrath real estate believes any change in the Sydney market is a record surge of November listings as the pre-Christmas rush drives the biggest month of auctions in the city’s history.
“Of course, this provides buyers with the benefit of more choice, and that’s great news, as supply has been tight across the board all year … But we are still very much in a sellers’ market, because buyer demand is so far in front of supply, even with the additional stock coming onto the market today,” Mr McGrath said in a recent blog post to Switzer Daily.
“You’ve got to remember that for four years prior to this growth period, the market was very flat and in correction mode, so a lot of this growth is catch-up… There is still room over the next couple of years for another 5 to 10 per cent growth in prices in key high quality Sydney markets.
“Today, it’s the best time in about four or five years to sell a $3 million-plus property in Sydney but I think it will get better – maybe five to ten per cent growth in prestige prices this year… We’ve seen a spike in activity in more prestige sales but prices have a long way to run, so I believe we’re in for a good couple of years yet with prestige property prices.”
A survey by CoreLogic RP Data found that during the September quarter, 66 per cent of respondents felt now was a good time to buy property – a fall from the June quarter level of 71 per cent.
Of those respondents in NSW, 52.8 per cent felt now was a good time to buy.
CoreLogic RP Data’s senior research analyst Cameron Kusher said most respondents remain optimistic.
“Although with the current growth period having run for so long, it isn’t a surprise to see a slight fall in the proportion of respondents who think now is a good time to buy,” Mr Kusher said.