Are Housing Prices A Good Or Bad Indicator Of Housing Affordability?

With discussions continuing around housing prices and difficulties with affordability across New South Wales, it’s important that investors and property owners keep up-to-date with the current market to best understand what is occurring with housing prices locally and what that means for NSW housing affordability.

The New South Wales Departing Head of Planning has pushed for a ‘ceasefire’ between the government and developers, calling for a changed view on major housing and design reforms.

In simple terms, New South Wales has a housing crisis and it’s taking longer than expected to get the ball rolling towards a solution. While the State Government continues to discuss how they can support their communities with more houses at more affordable prices, we want to give you some things to look out for when comparing property pricing.

In New South Wales, Sydney in particular, we aren’t strangers to the property market continuing a hard increase for the last 30 years. That means less people are willing to buy their first home, others are downsizing or investors seize the record-breaking low interest rates.

For those who already own property, you won’t really feel the burn. But others who are average income earners, wish to save for a down payment or generally are trying to balance their finances are certainly hurting! So, what can we do about that?

If you wish to find investment properties or just a home during this time, there are certain things you can do to get yourself a great, affordable place.

    Covid-19 is causing Sydney property values to increase in Some Residential Areas. Is It Time To Sell?

    Filter By Price and Location

    It seems obvious but websites like ours allow you to specify your budget and even just look at cheaper options to see if anything catches your eye. If you are really needing a quick house, get into the habit of clicking for the cheapest options to appear first, then you can move up from there.

    You can also broaden your geographic area and find those suburbs that tend to have lower pricing all year round. While it is great to be central or close to work and shops, looking outside cities can open up the market to best suit your budget. Smaller suburbs that could be a 15-minute drive out of town but are quieter, family-friendly communities. You can still find local shops and even hidden gems like beaches in these communities, just outside of the big city.

    Don’t Restrict Yourself to a ‘Few’ Houses

    There is nothing wrong by looking at lots of houses, both online and in-person. Viewing properties yourself allows you to understand the local housing, community and even meet your local real estate agent. By comparing properties yourself, you have the best understanding of value verse pricing. Since we are able to set up short inspections, you can schedule several into a day and have a fresh mind to compare. While it doesn’t take up too much time, it increases your chances of finding a great deal.

     Make Lots of Offers on Your Terms

    By submitting lots of offers to a variety of properties, you are simply increasing your odds. Don’t be worried about asking for a price that suits your budget as your chances of it working for someone else are only improving!

    It can absolutely feel overwhelming to complete a lot of forms, but with applications now online rather than paper, it’s usually as simple as clicking a button.

    Set Up Auto Email Alerts

    Another great option on our website is that you can be first to see a property that suits your needs. Picking options like bedroom size, location, pricing and availability means you get to see every related property collated in one email, and you’re the first to see it online. It also means you can concentrate on other things while we do the hard work for you!

    So, while we see housing availability and affordability continue to be tricky across New South Wales, there isn’t really anything new apart from these ongoing discussions in our State Government. There absolutely is still a shortage in housing developments which is affecting affordability, but we continue to see plenty of fantastic homes on the market. The way investors or potential home buyers need to think has now changed to make sure you get the best house for the best price.

    But we can confirm good news! With the State Government unveiling major policies around housing and urban design, this will mean our communities and apartment blocks will not suffer post COVID-19 and to ensure developers have increased options to build more, new housing.

    Get in touch today for a chat. Call 02 9662 3954
    For more information: mgmmartin.com