The real estate market never stops moving. For property owners, investors and stakeholders, staying on top of the existing conditions is essential. One of the most reliable methods of keeping track of the market is via professional valuation services in Sydney.
For anyone with a vested interest in property, whether you’re a homebuyer, investor, or homeowner, understanding the factors that impact the market is important for the successful navigation of its complexities.
Reviewing the multifaceted interplay between the various contributing factors can provide insight into the way the market moves and what impacts the price of real estate.
Factors affecting the real estate market
A wide range of contributing factors affect the conditions of the property market. They may vary over time and can lead to abrupt changes in property prices, demand, and general conditions.
A few of the main factors that impact the housing market are:
Economic conditions
Naturally, the state of the economy has a hugely significant impact on the real estate market. Contributing factors such as inflation, economic growth, interest rates, employment levels and more can directly affect the price of properties. A strong economy with low-interests leads to increased demand and therefore higher prices for homes and commercial properties.
Supply and demand
As mentioned above, supply and demand play a critical role in the price of real estate. If demand goes above supply, the prices will begin to increase. On the other hand, an oversupply of real estate may lead to a decrease in property prices. A number of factors impact supply and demand dynamics, such as population growth, government policies, the state of the economy and migration patterns.
Government policies
Local regulations and government policies can have a notable effect on the real estate market. Any laws or policies related to taxation, zoning, financial lending, and incentives for homebuyers can directly impact the price of real estate in NSW. For example, any significant changes in taxation rates or applicable grants can impact the affordability of properties.
Interest rates and mortgage availability
Access to mortgage finance will, of course, have an impact on the real estate market. When interest rates are low, financial lending becomes easier for many, and this stimulates demand for real estate, and vice versa. Additionally, access to finance and lending criteria also impacts buyer activity.
Global economy
The global economy plays an important role in property prices. Factors such as international trade trends, foreign investment, exchange rates, international relations, and more can influence the state of the real estate market. Global economic stability and investment patterns lead to changes in demand from foreign buyers.
Demographics and lifestyle
Another important consideration is the lifestyle preferences and demographics of an area. Population growth, household set-up, age structure, and cultural beliefs can have a direct impact on the demand for a range of property types. A family-oriented population can lead to a demand for more sizeable homes, while an aging population will increase the demand for retirement communities.
Infrastructure development
The real estate market is also affected by the various infrastructure development projects underway in the area. When infrastructure projects exist for public transport, schools, hospitals, and commercial developments, that may increase the desirability of certain locations. As such, the demand for property will increase and prices may end up higher.
How to find the market value of a property
Keeping up with the ever-changing conditions of the property market can be overwhelming and complicated. Not just anyone will have the tools and expertise to determine the market value of a property. You’ll need the help of a professional for an accurate assessment of market value.
For reliable valuation services, you need assistance from a Certified Practising Valuer (CPV) registered with the Australian Property Institute (API). An API-registered CPV is a highly qualified and experienced valuation expert adept at preparing unbiased reports based on objective evidence.
Valuers have access to property and market databases and often perform a full physical inspection of the subject property. By going through every internal and external factor that contributes towards value, CPVs can prepare accurate and detailed valuation reports for all sorts of property types.
A valuation report from an accredited valuer is considered certified proof of market value and can be used in a range of private, legal and business transactions and negotiations.
Some of the factors that impact the final market value of a property include:
- Location
- Size and space
- Building age and condition
- Street appeal
- Surrounding infrastructure
- Renovations and renovation potential
- Market conditions
Summary
The state of the real estate market in New South Wales is constantly changing. A range of different factors impact the market and affect the price of properties in the country.
Anyone interested in real estate can stand to benefit from learning about the market. Some of the key factors affecting the market include the state of the economy, supply and demand, access to financing, government policies, and infrastructure development.
Finding the market value of a subject property is difficult, and your most reliable way forward is to hire the services of an accredited valuer. API-registered CPVs are qualified valuation specialists adept at preparing accurate valuation reports.
An independent valuation report from a qualified valuer is accepted as official proof of market value. Reports are thus an incredibly useful tool for homeowners, buyers, and investors.
If you would like to learn more about the ins and outs of the real estate market in Sydney, give us a call today. As industry leaders, we’re more than happy to assist.
