The Sydney market rebounded very quickly over the last few months of last year and it doesn’t look like slowing down anytime soon and it’s likely we’ll see a number of new record prices if the latest data from CoreLogic is any indication of what’s ahead in 2020.

Yesterday, CoreLogic’s daily index showed Sydney values had jumped 0.7 per cent in the first 21 days of January, whilst Melbourne values gained 0.8 per cent, which were more than double the 0.3 per cent seen in Brisbane-Gold Coast, Adelaide’s 0.2 per cent and Perth’s 0.1 per cent during the same 3 week period.

According to Commonwealth Bank's latest household spending index, pent-up demand from house buyers suddenly back in the game after laying low during the downturn is pushing home-buying intentions to a record high and as outlined in the Australian Financial Review article…

"There's been a number of things to ignite price growth in markets that were otherwise falling," Domain Group's senior analyst Nicola Powell said. "That being three interest rate cuts, so credit's cheap, and the relaxing of mortgage serviceability measures so buyers can access greater debt."
Separate figures in the latest quarterly house price report from Domain.com.au show that the rebound has gained momentum in Sydney, which posted its first annual growth in two years. If prices continue at their current pace, the market will recoup the $165,000 lost during the 18-month downturn, with the median house price expected to break the $1.2 million barrier by the middle of this year.

So how far will it go this time?

It’s hard to say where this next phase of price growth will level out, but there are plenty of indicators that we should experience a rebound equating to double digit growth across many areas throughout Sydney, whilst…

HSBC economist Paul Bloxham said despite the strong rebound in the market late last year, he was still anticipating single digit growth nationally of between 5 and 7 per cent.
"We think we will see some cooling as more supply comes to market. We think the strong rise in house prices will attract people to put more houses on the market and the boost to supply will provide some cooling for the pace of growth of house prices in 2020. If you look at the supply and demand dynamics, there's still very strong population growth and there hasn't really been very much evidence of any oversupply," Mr Bloxham said.

However, if we look at the Sydney acreage market, there’s currently still some evidence of an oversupply which should change over the first half of this year as more and more buyers have already started to look at taking this opportunity to capitalise on an increased sale price for their residential home. The price growth in the housing market is now allowing a lot more homeowners to sell up and make their move onto acres, especially with the lower interest rates also making the move a lot more achievable.

There’s been a stark contrast between the level of buyer enquiry this year versus the start of 2019 as buyers with greater access to credit than they had in the past are now experiencing more competition as they look to get into the acreage market before it rebounds significantly.

If you’re looking to make the move onto an acreage lifestyle property, it looks like now is a great time to get in before the recovery of the acreage market goes into full swing.

If you’d like to know more about what’s happening in the acreage market, make sure you grab your FREE copy of The Acreage Report here

Regards

Greg Vincent