What has happened to Northern Beaches house prices in 2021?
Northern Beaches house prices have kept rising in 2021. A local buyer’s agent explains why the area is so desirable and how you can get your foot in the door.
The pandemic has had a huge impact on house prices across Australia and Northern Beaches house prices are no exception. Always popular, this highly coveted area is seeing record high prices across the board… but what’s behind the increase?
According to Domain, the cost of buying a house on Sydney’s Northern Beaches has jumped by $867,500 over the past year, taking the median house price to $2,747,500. That’s an increase of over 46 per cent over the course of a year.
In Manly, house prices jumped from an average of $3.09 million to $4.01 million over the last twelve months or so. Up the road, the cost of the average home in Dee Why rose from $1.844 million to $2.483 million, while Mona Vale prices went from $1.866 million to $2.43 million, and Palm Beach rose from $3.587 million to $4.575 million.
While COVID has played a large role in the dramatic increases, there are other reasons behind these high averages:
- Lack of availability: Thanks to COVID, people are simply less likely to want to move, especially from a desirable area like Sydney’s Northern Beaches. This means that there are fewer properties on the market. It’s a classic case of supply and demand. Scarcity almost always equals high prices but remember that fewer sales can push averages up and not necessarily reflect the price you can expect to pay on a standard family home.
- Greater demand: The flip side of fewer homes being available is that demand is higher than ever. With the increase in people working from home, established beachside suburbs like the Northern Beaches have become even more highly sought after. This area provides one of the best lifestyle/work balance opportunities in the state so naturally people are gravitating towards property here.
- Low interest rates: With the Australian Reserve Bank holding the interest rate at an all-time low of 0.1%, loans are less of an encumbrance. Buyers know they will have less interest to repay so they can afford larger to make higher offers on properties they are keen on. As a buyer, this can be a catch-22. You have more to spend but so does your competition.
- Lockdown savings: Many buyers have been able to save money over the last twelve months. Without the ability to travel and spend money on entertainment, plenty of people have accumulated more savings than they might have in other times. With decent savings, buyers can put down higher deposits and afford to repay larger loans.
- Lifestyle changes: COVID has changed the world forever. The commute to the city that might have put people off moving to the Northern Beaches a few years ago is less of an issue these days. The beaches have great schools, access to a brand-new hospital and of course, great beaches so it makes sense to want to enjoy the benefits of the area.
Put all of this together and it is no wonder Northern Beaches house prices have skyrocketed.
However, it is still a good time to buy. Being within easy reach of Sydney means suburbs like Manly, Dee Why, Curl Curl and Warriewood will always be in demand and forecasters aren’t talking about a drop in demand or rise in interest rates being imminent. And when you consider that the average house price in the Eastern suburbs is $3,147,500, you’re saving a great deal by heading further north.
The key to getting a home you love at the right price is to work with a Northern Beaches buyer’s agent who understands the area, knows local agents and can put you in a position as the desired purchaser. While you still need a healthy budget, having the support of a Northern Beaches buyer’s agent means you won’t keep missing out on your ideal property.
In one of Australia’s most competitive markets, you need a Northern Beaches buyer’s agent to help you get ahead of the competition. Contact Hallmarq Property Group for the support you need to buy a home sooner.
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