Australia: Sydney Real Estate Prices rise again

Good news for those looking to purchase or invest in property in Sydney, as economists have announced that prices have bounced back after 10 months of decline.

Good news for those looking to purchase or invest in property in Sydney, as economists have announced that prices have bounced back after 10 months of decline. This news was driven in part by the Reserve Bank of Australia (RBA)'s April 4th decision to pause interest rate hikes after 10 consecutive increases. While this might sound like great news for borrowers, it should be noted that the RBA has made it clear that further rate hikes may be necessary to track inflation to its "time-average" target of 2-3%.

CoreLogic, a leading real estate analytics company, also recently reported that national housing prices rose sharply in March 2023 by 0.6%, which is the first time this has happened since April 2022. This increase was led by Sydney, Australia's most expensive market, which saw a 1.4% increase, pushing the city's median property price back above $1 million.

However, despite the positive news, there is still a lack of housing supply in Sydney. According to CoreLogic data, the number of new homes listed for sale is down 25% year-on-year and about 12% below the five-year average. This suggests that many sellers are holding onto their properties and waiting for a more favorable market to launch.

Demand for property in Sydney is being fueled by an increase in overseas migration to the city, as well as a tight rental market that is encouraging potential homebuyers to enter the market. But with the lack of available housing supply, this can lead to further price increases.

Overall, the property market in Sydney is showing signs of improvement, but it remains a complex and ever-changing landscape. Those looking to invest or purchase property should seek the advice of qualified real estate professionals to ensure that they make informed decisions about their investments.