Market Steadies 2013
LIVERPOOL PROPERTY MARKET STEADIES
The Liverpool district property market in the Greater Western Sydney region is set to moderate in 2013, with deteriorating market conditions on the back of a stable market in the latter half of 2012, according to the First National Real Estate 2013 Property Market Outlook.
The Outlook, released this week, is based on a survey of the 400+ member network, drawing on its experience at a grass roots level and providing insight into what member agents expect the market to do.
“In Liverpool the state government’s removal of the first home buyer grant has seen enquiries from this segment diminish, which is dampening any stronger performance by the region’s property market,” Mr Sam Ghandour, Principal, First National Real Estate Liverpool said.
The Outlook highlights key performance indicators showing the average number of days a property is on the market is expected to hold in the coming six months, along with property listings and turnover – all signs the market is stable.
According to Mr Ghandour, a combination of factors including ongoing economic uncertainty in global and domestic markets, job insecurity and lowering consumer confidence is serving to keep the market soft, even in light of current strong affordability levels.
House and apartment/strata property prices should remain relatively flat, while land prices should trend upwards due to government incentives for newly built properties.
“The $15,000 grant has pushed people to buy land and house packages further out which is having an impact on the local market,” Mr Ghandour said.
A strong rental market should see vacancy rates tighten further which will place upwards pressure on weekly rental prices.
Driven by strong rental returns, Mr Ghandour expects investor activity to increase, representing the strongest growth in the Liverpool region.
Interest rates are expected to remain unchanged over the coming six months, which may deter buyers to some degree.
Job insecurity and escalating living costs are placing pressure on stressed mortgage holders, and an increase in mortgage defaults is expected in the region.
The Entry Level market, where properties are priced below $350,000, is expected to show the most activity in the coming six months.