Property news: discounts in Sydney, yet Melbourne suffering more
In this week's news, how low can you go? Everywhere we look we're seeing words like 'discounts', buyers market' and 'best value'. So what's happening? On news.com.au, they're giving us some exclusives on where to bag a bargain in Sydney. This comes hot on the heels on what was one of Sydney's lowest auction clearance rate since 2012. It's a similar story everywhere, seen here on ABC too: Housing market posts first annual drop in 6 years, driven by Sydney and Melbourne.
Whilst we have known for a while that Melbourne and Sydney have suffered the most in this downturn, AFR has just reported that Melbourne tops Sydney as worst performing property capital (according to research by Morgan Stanley). Interesting points from the article:
The 'median cost of housing in Melbourne and Sydney is twice the property costs in New York and Seattle'
Morgan Stanley 'believes the Reserve Bank of Australia will not increase cash rates until the third quarter of next year'.
'Vendor discounting has increased to more than 4 per cent for houses and apartments, prices are falling and auction clearance rates dipped to about 58 per cent during May, which means clearance rates are below 2017 levels'
'Prices in Melbourne have fallen by nearly 5 per cent in the past three months, more than any other national capital'
In other interesting news, despite the downturn, this derelict Glebe home is still expect buck the trend, and over on The Conversation, they are discussing the fallout from the foreign investment boom.
Despite the continued message that falls are going to be significant, we are still holding firm in the belief that now is the time to start looking if you are thinking of buying. Now is still a good time to buy. Nobody can predict the future, so don't wait. Stay tuned for more on this in coming weeks.
Have a great week everyone!