With the new year underway, those of us planning to buy and sell will be monitoring the news cycle and the market closely. Here are some thoughts about what we might expect this year with regards to property prices in Sydney, and more locally in the northern beaches, interest rates and the election.
Property prices – up, down or stable?
Last spring we saw a flurry of homes appear on the market; around 10% more than there have been since 2018, and 8.8% higher here in the northern beaches. This is an area that tends to favour a spring sale, though, as it looks particularly beautiful at this time of year, so we would expect to see a surge.
The median Sydney house price in November was $1,196,809. Prices fell in Sydney for a second month in a row, dropping by 0.2%, following a 0.1% decrease in October.
In early December, commentators reported that the national housing market appeared to be losing steam – but that was after an incredible 22 months of consecutive growth.
Looking more locally, Northern Beaches suburbs have largely shown modest to good growth over the last twelve months. Here is what happened in some of our key suburbs last year:
Allambie Heights $2,517,500 median price, up 7.2% in the last 12 months.
Beacon Hill$2,265,000, up 3%
Belrose $2,400,000, up 6.7%
Davidson $2,250,000, down 1.7%
Dee Why $3,000,000, up 21.2%
Frenchs Forest $2,284,500, up 4%
Forestville $2,350,000, up 7.6%
Manly Vale $2,950,000, up 10%
Narraweena $2,212,500, up 1.7%
North Curl Curl $3,795,000, up 29.7%
North Manly $2,950,000, up 1.2%
While we won’t see the record gains of the pandemic next year, strong population growth, high building costs, and the likelihood of rate cuts in 2025 should prevent any significant drop in house prices.
You will also be buying in a calmer, less heated market, which makes 2025 a good time to make a move if it fits in with your wider plans.
Bear in mind, though, that achieving a great sale will require a dedicated agent with local experience, time and energy to devote to marketing and negotiation.
What about interest rates?
A rate cut will increase borrowing power for many, which may create more activity among first-time buyers keen to get out of the rental market.
Many were predicting four interest rate cuts next year – but these are dependent on the global and Australian economy and inflation.
While rate cuts could boost property demand, high household debt and sluggish wage growth will likely temper the overall impact on house prices. Having said that, buyers who are waiting for a rate cut to buy will move quickly when and if it happens, so it’s worth getting your home ready now to meet the market in 2025.
And the election?
There’s no doubt that housing policy will be key to both parties messaging this election. Housing affordability and supply, helping first time buyers and tax benefits are all going to be front and centre for many voters.
We will likely see a flurry of activity after the election from both buyers and sellers – so it’s another factor to keep in mind if you are planning a sale this year.
The Northern Beaches market
What sets the market apart here is a smaller, more affluent buyer pool for large homes on generous blocks. We are also seeing buyers from the inner city looking to secure a larger home for their growing families, drawn to the beaches, lifestyle and excellent schools.
Selling in 2025?
While rushing a property onto the market when prices are hot can pay off, in a slower market it’s important to choose your moment carefully, take your time preparing your home, and work with a local agent who can really focus on your sale.
A beautifully presented and well-marketed home is always going to find a buyer, so chat to us if you have any questions about getting your home ready for sale.
