Sydney inner west: what is happening with the market?

I have been looking for 2 br appt in the inner west over the last few months.

What I have noticed is that there seems to be little stock on the market. Whatever comes up seems to be snapped up quickly (unless it is overpriced).

I'm getting the feeling that the market is 'hotting up' to the point where the last wave of (usually desperate) buyers comes to mark the peak of the market.

I'm not saying it's going to crash, as it probably as some momentum to go further, but it seems a bit weird.

Is it what other people who are are observing?
 
Rental and buyer markets are both pretty tight. I know of people who are looking to buy because the rental situation is so poor.
 
How do you know this is the "last wave"..? how do you know it's the peak of the market?

Yep, inner west is crazy at the moment..

I don't know, and I don't pretend to know, which is why am I asking for feedback.

I would have thought that we would be at the stage of the property cycle where there would be strong demand and property prices rising modestly, but not frantic activity.

Yet this is not consistent with what I am observing.

So I am a bit confused, which is why I am asking whether people can help me make sense of what is happening.
 
Housekeeper,

I buy quite a bit in the Inner West and have posted on a number of threads on this issue. May I suggest you google: site:somersoft.com "propertunity" "inner west".

Maybe you have seen me at some of the auctions / Opens. I reckon the market moved 10% from 1/7/09 to 31/12/09 and then another 10% from 1/1/01 to 28/2/10 - mostly due to shortage of stock + huge demand.
 
So do you think it's in a mini bubble? 20% is a lot in such a short period of time. It won't matter how much prices rise what will be constant forever and ever is the relative pricing of Sydney's areas

Eastern Suburbs (the real ones) / Lower North Shore are always going to be more desirable than Inner West. When this sort of shortage/demand imbalance happens it's time to look somewhere else except for Macquarie Park/North Ryde where I think the foreign investors are most prevalent.
 
So do you think it's in a mini bubble? 20% is a lot in such a short period of time.
I don't think it is a bubble. It is not uncommon for 40% or more CG in a single year at various times in the cycle. This might just be one of those times.

Since it was relatively flat from 2003 to 2008, then I would expect some big numbers in some years to get back to trend of 8-10% pa if history is to be repeated.
 
I noticed this recent sale:

http://www.domain.com.au/Property/Sold/House/NSW/Newtown/?adid=2008227866

Having looked very closely at the market last september, I can tell you that this price is no more than you would have paid last september.

So either the market hasn't moved much since, or this was a good deal.

That indicates there are good finds in this market, you may have to be patient (& lucky) to find the right property where they aren't too many other parties interested.
 
I've seen plenty of 2brm units that would sell for $420-430K at the end of 2009, now selling for $450-470K and people falling over themselves to buy them still.
 
don't know guys...i see both examples !

(i am the innerwestie !)

it is somewhat confusing...

on the other hand, how much higher can it go?

:confused:

although i don't see it in the units...where are the units you used as an example ?

maybe i'm not that familiar with the area...it only takes a few weeks of not watching....
 
I made a few visits to Sydney last year and decided on Inner West as place to buy. IMO it is the Hardest place in Oz to buy in terms of agents, auctions, contract rules etc.

In the end I have for the first time appointed a Buyers Advocate to buy a couple for me there, they are bidding for one at auction this Saturday so hopefully I can finally get a piece of Sydney RE.

I have noticed that prices seem at least 20% higher than when I first visited in March 2009.

Cheers

Bigtone
 
In the end I have for the first time appointed a Buyers Advocate to buy a couple for me there, they are bidding for one at auction this Saturday so hopefully I can finally get a piece of Sydney RE.

Haha, I am bidding at a couple this week-end too (and I'm not your BA, AFAIK). If we are after the same one or two - I hope your BA loses. :p;)
 
I've seen plenty of 2brm units that would sell for $420-430K at the end of 2009, now selling for $450-470K and people falling over themselves to buy them still.

Hi Prop,

Dont know if I have asked this question lately, but what are you seeing on the ground in Erskineville? How are 1 bedders faring there?

cheers tab
 
Hi tab,

Erskinville is doing just as well as any of them.

I don't buy 1 bedders though - so I'm sorry I cannot answer your Q from experience. My suspicions are that they go just as fast. I see them advertised and then I see them sold.
 
Most of my clients are investors and I've never had a single one ask for a 1 bedder UNLESS it has a study, which most 1brm don't and if they did - you are really back to a 2 bedder again :) (broardly speaking)

Hi prop,

Is it that 1 bedders dont achieve the same CG as 2 bedders or is there a difference in yield?

Sometimes there isnt too much difference in entry costs (80k / 100k deposit for 80% LVR) and I have also been reading that in the next 20years the amount of single person households will rise considerably which leads me to think 1 bedders in inner west or desirable areas will grow quite well?

cheers
tab
 
http://www.realestate.com.au/property-unit-nsw-croydon-106352967?tm=1269725971&c=18740782&t=res
Formal Bank valuation done 2 days prior to auction: $485K
Reserve price set by vendor 2 days before bank valuation: $465K
Sold yesterday for $504K....and not to me

This is just a number in a long list that have gone well over expectations and a new baseline has been set. I was prepared to see it as a short term spike in Jan/Feb when there were hardly any listings. But there are more listing now and prices have not only held but continue to rise.
 
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