MARKET NEWS
Sales Market Review
Monday, November 02, 2009
The October property market recorded some excellent sales, reinforcing the significant improvement that it experienced throughout the winter months. At the time of writing, the share market hit a 13 month high and the Reserve Bank indicated that a new stage of expansion had begun and that it expects the Australian economy to grow through 2010. A report by QBE Lenders Mortgage Insurance was also released predicting that Sydney house prices will increase by 20% in the next three years. Where did the crisis go?
This renewal of confidence and improved economic conditions prompted the RBA to start balancing interest rates which commenced with the first increase of 25 basis points, with many predicting another to follow on Melbourne Cup Day. At a recent meeting in October, Reserve Bank Governor, Glenn Stevens, suggested the bank would lift rates as quickly as it cut them now that the major economic threat looks to have abated. Traders in interest rate markets predict the RBA will lift rates from 3.25% to 4.75% within a year.
Locally, it looks as though the property market will finish the year reasonably well. In our reported period and zone, our office sold more than a third of all property transacted and secured a number of premium sales which included the highest priced house sale in Birchgrove and Balmain and the highest recorded house sale in Rozelle for the year. Property prices are seemingly back to the pre-crisis levels of 2007 with some hesitation (although quickly reducing) for properties priced above $2m. It has been a quicker than expected turnaround and augers well for the new year.
November is the final month of listing for the year, so there is a good chance that what buyers are viewing right now is likely to be the best available until February 2010. We'll be monitoring the amount of property which is likely to remain unsold for the new year as this is normally a good precursor as to how next year will commence. We're always open to talking property, so if you'd like to speak to one of our representatives, never hesitate to call.
- Sales Market Review
- Sales Market Review
- Sales Market Review
- Sales Market Review
- Sales Market Review
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