MONTHLY MARKET WRAP – SEPTEMBER 2018

  • October 2, 2018

How will the Spring selling season perform this year?

 

We’re now well and truly into the Spring selling season and the usual influx of listing hasn’t eventuated compared to previous years. This probably comes as no surprise, with discretionary sellers likely taking the view that now isn’t the ideal time to sell. However, great opportunities exist for homeowners looking to upgrade and for new buyers due to the price corrections from the recent market peaks.

We are encouraged to see many first time buyers at open homes, as it wasn’t so long ago that for this category of buyer, owning a Sydney property may have been a pipe-dream.

We’ve had some very strong prestige sales in the $5-6m range, which is always a positive indicator. While we haven’t seen any great volume of premium property, we are currently marketing several homes in the $8-10m range and the enquiry level has been unexpectedly strong.

Correctly priced properties are selling well but understandably buyers are looking for value in the absence of the pressure of a rising market. The general sentiment is that any bounce in the market is unlikely in the short to medium term.

 

What to believe in the media

 

There was much hype over the past week about a 60 Minutes story forecasting a dismal future for the Australian property market, with some supposed experts predicting falls of 40-45%. When you delve further into the story, we understand that one of the main participants provided 60 Minutes with four possible scenarios for the Australian property market. However, only the fourth ‘Armageddon’ option, of which they believed is only a small chance of eventuating, was put to air, thereby sensationalising the topic.

At the end of the day, the major banks employ extensive research and analytical resources, and as the biggest and most exposed stakeholder in the property market, their influence on the market should not be underestimated. This was clearly evidenced when several of the majors recently lifted interest rates independent of the RBA.

 

September’s signature performers

 

 

 

 

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