Some analysts believe that when it comes to real estate Sydney is still a hot market.
As previously reported, Sydney was the weakest performing city as of the quarter ending December 2015 after CoreLogic released its latest figures showing that the New South Wales capital saw the biggest drop in home values since May 2013. As of December 2015, median home prices in Sydney sat at $800,000 and it is still high if compared to cities like Melbourne in which median prices sit at about $610,000.
Despite the reported month-to-month drop in home prices. Several experts reportedly believe that Sydney remains a hot market for houses. According to head of research at CoreLogic Tim Lawless economic conditions in Sydney are healthy and population growth is still strong.
On the other hand, there may be houses in Sydney that sell under $700,000 but they are small in space and a bit hard to find. Nevertheless, they are often considered good deals. Meanwhile, according to Domain, a three-bedroom home priced up to $1.5 million is already one of the hottest properties in Sydney's residential real estate market. And despite the recent drop in home prices and the low auction clearance rates, houses that sell at these range in desirable suburbs still sell strong according to real estate agents.
McGrath agent Shad Hassen, who just sold a three-bedroom bungalow at 8 Browns Avenue, Enmore for almost $1.5 million, said, "The market is better than what I was seeing in the last portion of the year." He detailed that there were 20 people who registered to bid on the property that was then owned by Newington College with the reserve of $1.3 million. The price guide was from $1.25 million to $1.35 million. Hassen's other colleagues had similar success with one colleague having sold a property that was $170,000 above its reserve price.
