Sydney house prices recovering

But that's irrelevant, median house prices are determined by the whole market. By the volume of actual buyers and what they pay. Prices can fall fast in markets regardless of whether owner occupiers keep buying, even in greater numbers. You are grasping at straws.

 

@standtall I am not sure how you seperate the owners and investors, I've been tracking the rp data daily and monthly index for both houses and apartments. The trend has not stop sliding. I agree some suburbs seem to stablised, but it's too hard to tell as limited sales sample in individual suburbs makes it very unreliable to judge in the short term. Even if the data is true for the suburbs you are looking at, it does not stop them from falling further down the track when neighbouring suburbs are doing badly and therefore drag it down.

CoreLogic Home Value Index - Daily Indices | CoreLogic

 

... and growth of loan size is not an indicator of price growth. It can be affected by LVR growth, indicating growth of mortgage stress, or refinancing to increase loan size to get a better rate

 

This Drummoyne house was listed with an auction guide of $4 million and sold for $5.8 million at auction yesterday!

53 Dening Street, Drummoyne NSW 2047 - House For Sale | Domain

 

High end houses are a exception....I saw the house and it was special.....

The overall issue is that Sydney and Melbourne are correcting.....2019 will be a big year...and 2020 might be prime to get in...

 

@standtall most suburbs are still falling and more to come

@sash has called this downturn mostly right expect it was too early and I even thought mid 2018 it would pickup as so much demand, and the slow down would start in 2019 but I was wrong.

 

A lot won't like what you are sayin'

But you are right...we are in for a fair correction. 2019 is going to be very difficult for Sydney and Melbourne....

 

It is what it is and this is my first cycle so its really interesting it play out!

Still worth getting in QLD or would you recommend other states?

 

It is definitely worth getting in...I would steer well away from lower socio Logan....even parts of Moreton Bay......QLd is quite different.....

 

@sash what about areas of Logan LGA with good owner occ appeal? Any suburb suggestions with entry/affordable price points?

 

Wow, this is spectacular.

53 Dening Street, Drummoyne NSW 2047 - House For Sale | Domain

In the inner south market where I live, similar trends are appearing:

- If property isn't appealing to an owner occupier, then you're getting ~15% of peak prices. Relative bargains out there.

- If property is appealing, your getting peak prices...possibly even 5%+. Suburb records for nice enough homes are still being set. These are rare though and owners who want something special will pay for it (not quite as special as Dening above). One 3x2 with same fundamentals vs another are getting ~50% price differences (1.05-1.1 vs 1.6-1.65) based on it being a bit special. A spectacular Reno on the cheaper property can probably be done for 250k. The property thats selling for 1.1ish has come down from a round 1.25-1.3 in peak markets. The property selling at 1.6-1.65m would've hit 1.55-1.6m in early-mid 2017.

Summary:
- It's creating some value opportunities for those who can find something thats ugly and covert it into desirable and be creative about it.
- Its an upgraders/owner occupier market only. Stock catered to other segments or not unique is getting discounted big time.
- Buyers are out there and have money, they just get to choose more selectively how they allocate it.

 

Yep those are okay Rochedale South, Daisy Hill, Underwood, Springwood, etc.

Just not places like Crestmead....Woodridge...Logan Central...Kingston.... a lot of people jumped in these areas...and have made like 50k over 7 years. Thye bought for yields...and now even that is at risk...simply that people followed other people like leemings.....

 

Thanks @sash Certainly areas like you said under threat. Big investor activity. Just didn’t think all Logan LGA is tainted with the same brush

 

Too many people reading people with vested interests stories and jumping in.....too many millenials...thinking the streets are paved with Gold. A lot of them have bought there and promoted other businesses.....

 

Not saying there no protential though Considering how far has Mt Druid have gone up. But I think there are far safer options like you mentioned. I did consider at one point but decided to go for springwood instead. The like of Kingston, woodridge did seem to attract tennants of the worst kind when I was checking dozens of places. I didn't think I can put up with the risk.

 

Remember Brisbane does not have the same drivers like Sydney and even Melbourne.....one has to select places with more care....

 

Wait and see for qld

 

What you expecting for QLD?

 

Sydney house prices have biggest monthly fall for 14 years and Melbourne close behind

"House prices in Sydney have recorded their biggest monthly fall for 14 years and remain on course for one of the steepest drops ever.

Prices in the city fell 1.3% in November, compounding hefty falls in preceding months, according to figures from data researcher CoreLogic."

 

Yes agree, if a property isn't appealing then prices won't hold up and you can find examples of good properties performing well in every suburb. Here's another example of a desirable and characterful apartment in Dulwich Hill that has sold for over $70K it's estimate of $780K today for $850!

https://www.realestate.com.au/property/unit-2-225-wardell-rd-dulwich-hill-nsw-2203

It's supply and demand and high demand and low supply means prices stay high... see this Broome St unit in Maroubra hasn't come off much, 2brm selling for $850K today an outstanding price!

Sold 2/61 Broome Street, Maroubra NSW 2035 on 29 Nov 2018 - 2014769296 | Domain

Sold 17 Gilchrist Place, Balmain East $7million in less than 3 weeks:

17 Gilchrist Place, Balmain East 2041 - House for sale