Inner west is still best and positive predictions for 2020

Overview:

• High demand for houses $1.5-$2.5M
• Total days on market shortened
• First home buyers back in the game
• Property prices predicted to rise 15% in 2020 – time will tell
• New Home Loan Deposit Scheme to roll out 1 January 2020

With just over four weeks left on the countdown until Christmas, November has been a fast paced month, loaded with achievements. Total days on the market have significantly reduced, and houses are literally the hottest property, with the highest demand circling the $1.5-$2.5M mark. 

First home buyers have proven that they are willing to pay to secure themselves in an area that is right for them, and just in time for the new Commonwealth Government’s First Home Loan Deposit Scheme which will kick off from 1 January 2020 – see more below.

There is a general consensus now that the property market is experiencing one of its fastest turnarounds for recovery, and figures from CoreLogic also show the inner west recovery is far outweighing the rest of Sydney. In an annual outlook report by SQM Research, it was predicted this week that the cost of houses could rise by more than 15% in Sydney next year.

With values in the inner west increasing by 1.9% alone in the past month, and by 6.3% in the past quarter to a median value of $1,117,260, we’re confident we can help you reach your goals for a fresh start in the new year.

The Home Loan Deposit Scheme – from 1 January 2020

Building on the success of the First Home Buyer’s Grant introduced in 2000 to offset the effects of the GST on home buyers, the Commonwealth Government has now allocated $500 million to the First Home Loan Deposit Scheme from 1 January 2020, to make housing more affordable, and the pathway to first home ownership more achievable.

The Home Loan Deposit Scheme will assist an eligible first home buyer to purchase a house with a 5% deposit, with the government providing a loan guarantee of up to 15% of the property’s value to individuals earning up to $125,000, or couples earning up to $200,000, per year. The scheme could also save you up to $10,000 in lenders mortgage insurance.

In the Treasurer’s recent media release, the government announced the price cap for Sydney at $700,000, which is $450,000 more than the rest of the state, and should see first home buyers looking to secure themselves in the inner west, have a fair chance at entering the market.

Forecast for 2020

This year saw positives change the regulatory landscape which saw two, successive interest rate cuts, and ultimately signalled a transformation in the housing market as buyers once again could leverage themselves to the hilt. But what about 2020?

A forecast by real estate data group SQM Research predicts a 15% rise over the next year, if the Reserve Bank of Australia cuts rates again – as many expect it will in 2020 – and if the Australian Prudential Regulatory Authority doesn’t tighten its credit standards. But even under less drastic circumstances, prices could still rise 9% which is just the news we’ve all been waiting for.

The report also encouragingly states that a rise in prices in recent months would encourage more sellers to put their properties up for sale, solving one issue in the market: lack of supply.