Avalon and Palm Beach property prices are on the rise again. In the first two months of 2020, we have seen property prices rising across Sydney’s Northern Beaches.
The Avalon Beach property market recorded one of its fastest rebounds in decades, a return to boom-time levels. Since 2017, we’ve had a turbulent couple of years in the local market. 2017 saw the median house price rise to $1.77m in June, and then pull back gradually to a low of $1.54m in July 2019. As you can see on the graph below prices have boomeranged back from July 2019 through to December 2019 and continue to spike with today’s median house price being an all-time high at $1.91m that’s a 24% rebound over the last 8 months.
If you look at it from a 2020 perspective median house prices in Avalon have risen 5.8% from $1.81m on 31st December 2019 to $1.91m today – according to RP Data.
The same could be said of Palm Beach however its prices are more volatile from month to month and has seen significant growth from May 2019 when its median house price was $2.09m in comparison with 31st January 2020 where the median house price was $2.99m. Today Palm Beach has a median house price of $3.3m which is an all-time high over the last ten years. (See RP Data graph below)
It’s important to point out the difference between the property market of Palm Beach and the property market of Avalon Beach. Avalon’s market is primarily ‘mums-and-dads, owner-occupied’ and not as volatile month to month due to owners living in their properties for long periods of time.
Palm Beach is more volatile month to month due to its higher priced exclusive properties and weekender market. Some houses sell in the tens of millions.
If you’re looking to buy now, here are some considerations to help make sure you don’t miss out on the property that you may be hoping to buy in an increasingly competitive market.
Be Financially Ready
On Tuesday this week, the RBA announced another slash to interest rates now reaching a new historic low of 0.50%. While a cash rate cut had been predicted for the first half of 2020, a tough week on the share market and the impact of coronavirus on the global economy accelerated the decision.
As you are looking for the right loan and lender you should also be shopping around for the best deal.
Always make sure that your bank is up-to-date with all your financial information, any changes you have could affect your borrowing capacity. Loans are still taking longer to process than previously, so having your finance approved is highly beneficial for you to jump on a property fast and not miss out.
It’s important to have the latest information about market fluctuations and trends, especially the most recent happenings over the past three to six months. If you are constantly educating yourself about similar or comparable properties, (what they have sold for, or not sold for) you will be better equipped to offer and negotiate effectively on the property you desire to purchase.
There’s a quote that states “You’ll go broke waiting for the market to turn”, and while markets do go up and down, trying to predict the top or the bottom of the market is virtually impossible. What we know is that over time the property market has continued to increase and so buying with the intention of holding for the long term is a conservative investment.
Consider buying to renovate
If you can’t afford to buy your perfectly finished home, consider properties that can be re-worked or renovated to suit your specific needs. Rather than paying a premium for someone else’s design, you can invest in a property with potential, bring it to life yourself and add value for a future sale.
Here is a great example of a home I currently have listed at Whale Beach that will suit someone looking to renovate or rework.
In a rising market, many great properties may not even make it to market before they’re snapped up.
Currently, I am managing two off-market properties, an exclusive waterfront property for $7.5 million and another in North Avalon with 4 bedrooms; 2 living areas; 3 bathrooms; and a double lock-up garage for $2.3 million.
Be sure to contact me if either of these are of interest.