The Hornsby real estate Company: Analyze the current state of the local market

The Hornsby real estate company in Hornsby is an important segment of the Sydney property market, and has been the subject of significant attention in recent years. This report aims to provide an analysis of the current state of the local market by examining various indicators such as property prices, sales volumes, vacancy rates, and market sentiment. The report will conclude with recommendations for investors looking to enter or exit the Hornsby real estate market.

• Property Prices:

Property prices in Hornsby have experienced moderate growth in recent years, with the median house price increasing by around 2.5% per annum since 2018. In contrast, the median unit price has remained relatively stable over the same period, with an average annual increase of less than 1%. As of Q4 2022, the median house price in Hornsby was $1.4 million, while the median unit price was $680,000.

The recent increase in house prices can be attributed to a range of factors, including low interest rates, population growth, and an undersupply of housing. However, it is worth noting that the rate of growth has slowed in the past year, which may indicate that the market is starting to stabilize. Overall, property prices in Hornsby are still relatively high, particularly for houses, which may deter some investors.

• Sales Volumes:

Sales volumes in the Hornsby market have been relatively stable over the past few years, with an average of around 150 house sales and 100 unit sales per quarter. However, there has been a noticeable decline in sales activity in the past year, with house sales falling by around 10% and unit sales falling by around 15% compared to the previous year. This decline may be due to a range of factors, including increased competition from neighboring suburbs, tighter lending restrictions, and the impact of the COVID-19 pandemic.

• Vacancy Rates:

Vacancy rates in the Hornsby rental market have remained relatively stable over the past few years, with an average vacancy rate of around 2% for both houses and units. However, there has been a slight increase in vacancy rates in the past year, particularly for units, which may be due to increased supply in the market. It is worth noting that the Hornsby rental market is relatively small compared to other suburbs in Sydney, which may limit investment opportunities for some investors.

• Market Sentiment:

The overall sentiment in the Hornsby real estate market is positive, with many investors viewing the area as a safe investment due to its strong capital growth and low vacancy rates. However, there are also concerns about the high entry costs and limited opportunities for new development in the area, which may make it difficult for investors to find value.

Conclusion:

The Hornsby real estate market is a relatively stable market that has experienced moderate growth in recent years. Property prices are still relatively high, particularly for houses, which may deter some investors. Sales volumes have declined in the past year, which may be due to a range of factors, including increased competition from neighboring suburbs, tighter lending restrictions, and the impact of the COVID-19 pandemic. Vacancy rates have remained relatively stable, although there has been a slight increase in vacancy rates in the past year, particularly for units. Overall, the market sentiment in Hornsby is positive, with many investors viewing the area as a safe investment. However, there are also concerns about the high entry costs and limited opportunities for new development in the area, which may make it difficult for investors to find value.