Housing Prices in Sydney

Over the past 12 months, we have seen, and are still seeing serious global financial issues being played out.  This current global crisis is affecting property prices in many parts of the world.  Some analysts are predicting the same thing will happen in Australia.

One of the main difference between the property market in Sydney and the global property market is the principal of supply and demand.  In a strange way, we can thank the government for keeping immigration levels high and new housing levels low.  This, in effect, has created a major short supply of housing.  This shortage of housing will, more than likely, keep the prices solid.  We are also starting to see a return of the Australian Expat, who will also need housing.

Australians have a huge love of property.  People will do anything to hold on to their homes.  The holidays may go, upgrading the car may be put off but homes will be absolute last resort. 

It is actually a good thing that selling property is a lengthy process.  It stops panick selling like we are witnessing in the stock market.