Domain released their forecasts for 2020 yesterday and they’re largely in line with our own forecasts for the year. They predict houses in Sydney will rise by 10 per cent over 2020 to a new median of around $1.25 million, while apartments will rise by 8 per cent to a new median of $790,000 – just above the peak reached in June 2017.
To overlay our own predictions for the Lower North Shore, many of our sales are breaking street and block records, so it seems likely 2017 price averages will be breached by the middle of the year.
FOMO, or Fear Of Missing Out, is prevalent in the current market with a continued lack of stock which will hasten higher record-smashing heights. Anecdotally we’re seeing this with new listings achieving multiple offers after even one open as buyers compete to avoid auctions.
Domain include the same caveat we mentioned several weeks ago, which is that economic conditions may impact the rate of growth. In particular they cite the coronavirus, which may impact Australia if the economic impact in China is severe. Domain also cite a possibility of APRA taking action to slow price growth through limiting lending, as they have done in the past.
