With the new year upon us, and with more certainty about what lies ahead, more Sydney homeowners are contemplating a move.
During the tail-end of 2020, there was a significant uplift in the number of upgraders beginning or restarting their property plans in Sydney.
One of the biggest mindset shifts that was happening post-pandemic was a move away from the inner-city to areas that offer more lifestyle.
Because many of us don’t have to work in an office anymore, or perhaps will only do so a few times a week, then there are more options than ever before when it comes where we choose to call “home”.
CoreLogic Home Value Index showed that the Sydney median house price was nearly five per cent higher than it was the year before at the end of November.
When the pandemic hit, many commentators were not predicting anything like that – in fact, there was some alarmist forecasts of double-digit property price falls.
In times of economic trouble, though, government stimulus and low interest rates are always unleashed to protect our collective wealth, including the value of our homes.
This is what occurred this time around, perhaps in unprecedented ways, but the outcome has been a sharp economic rebound as well as strong property market.
While prices are firming, and in some locations much more than the most recent data reflects, there remains plenty of opportunities for upgraders to make the most of the current market conditions.
One of the reasons is that the market cycle is only in its early days, with more price upswings expected over the short- to medium-term, partly due to the record low interest rate environment.
However, the key reason why upgraders are set to benefit is the concept of buying and selling in the same market, especially if there is a geographical move involved.
As a seller, there are plenty of buyers around who are prepared to pay well for a Sydney holding.
Homeowners in Sydney’s inner- and middle-ring suburbs, and elsewhere generally, have benefitted from strong property price increases over the past 10 years.
However, their mortgages have reduced from their regular repayments as well as a decade of low interest rates.
This means that they have plenty of funds available to purchase in areas, such as the Hills District, which offer more affordable property as well as lifestyle and amenity in spades.
Who would have thought that you can upgrade to a better home in a location with better liveability and possibly pay less than you sold your home for?
It’s the modern version of upgrading – where it doesn’t cost an arm and a leg to gain a foothold in a booming lifestyle location!
For example, the asking price for houses in Glebe is currently more than $1.5 million, according to SQM Research, but in Kellyville its $1.04 million.
The price discrepancy is even more pronounced when you compare it to somewhere like Paddington, where the asking price is more than $2.5 million.
So, if this year is the one when you decide to make a change to how and where you live, then there’s no time like the present to make the most of the market.