The housing market doesn’t always go up. So ‘should I sell my property?’ is the question many people are asking, particularly in Sydney and Melbourne where property prices have stabilised following unprecedented growth over most of 2015. Is now may be a good time to sell?
The end of the housing shortage
A lot of the price growth in the Melbourne and Sydney property markets has been caused by strong population growth combined with an inadequate number of dwellings. This increased demand for housing - and not enough homes to accommodate everyone - pushed prices upwards, particularly in areas close to transport and infrastructure.
However, the population is no longer growing quite so fast. In the year to March 2015, the Australian Bureau of Statistics reported that Australia saw the slowest rate of population growth in almost a decade. Meanwhile, you only need look at the skylines of Sydney or Melbourne’s suburbs to see how many new dwellings have been built.
Many suggest that we’ll more likely see a housing oversupply over the coming years rather than undersupply - particularly of units.
Click on the link below to see this month's CoreLogic RP Data housing market update, presented by CoreLogic RP Data research director Tim Lawless.
Headline statistics are: "Capital city dwelling values increased by a healthy 0.9% over the first month of Spring, taking the quarterly rate of growth to 4.0% and annual rate of growth to 11.0%.
The strong growth rate was mostly related to a 2.4% surge in Melbourne dwelling values over the month, while Sydney recorded flat conditions and dwelling values fell across Adelaide, Darwin and Hobart. "