Property shortage keeps prices up with offers ‘too good to refuse’
Market comment: Property shortage keeps prices up with offers ‘too good to refuse’
While 2020 is unlike any previous year we've experienced, properties in Australia's capital cities are actually selling faster than at the same time in 2019. Domain data shows that it took 69 days on average to sell a Sydney house by private treaty in the June 2020 quarter, while it took 87 days on average a year earlier. It was ...
Details
Price falls limited as Sydney property looks for Spring resurgence
Market comment: Price falls limited as Sydney property looks for Spring resurgence
The Sydney property market is signalling that it's anxious to return to normal, or at least fast forward to its ‘new normal', whatever that turns out to be. The number of new listings at scheduled auctions continues to increase while weekly clearance rates are holding firm in the high 60 per cent levels. In May, house prices fell just 0.4 ...
Details
Buyers return and the Sydney market shows signs of recovery  
Market comment: Buyers return and the Sydney market shows signs of recovery  
This time last month the Coronavirus was threatening to overwhelm our health systems and our economy. It was hard to find any positive news about the property market. However, in these fast-moving times we can now see some of that hoped-for light at the end of the tunnel, although it's going to take a while to determine what our ...
Details
Sydney property catches a virus and recovery’s not yet in sight
Market comment: Sydney property catches a virus and recovery’s not yet in sight
Was our last article really just a month ago? In our March 2020 article reasonably entitled “Recovery roars ahead”, we talked about Sydney's ‘improved and rising market' and how fewer than half the homes for sale in the previous month had been on the market for more than thirty days. We also noted that Sydney property prices were on track ...
Details
Recovery roars ahead, new planning changes, and first-home buyers return
Market comment: Recovery roars ahead, new planning changes, and first-home buyers return
It was just a year ago that price discounting in Sydney property sales was at its highest level in years, giving property buyers a rare opportunity to find a bargain in Australia's most expensive market. Twelve months later, vendors are now selling into an improved and rising market and few houses or apartments are being discounted to stimulate sales. Even ...
Details
Great expectations and the decade ahead
Market comment: Great expectations and the decade ahead
Australians are eager to buy houses according to the latest Household Spending Intentions (HSI) survey released by the Commonwealth Bank. The HSI combines real-time spending data from CBA household transactions with search information from Google Trends, then maps the results to official data on consumer spending to provide an indication on householders' future spending patterns. “Home buying intentions spiked higher ...
Details
A new decade with new highs in the year ahead
Market comment: A new decade with new highs in the year ahead
Australia's capital city property markets have enjoyed a pretty good end to 2019, with five of eight finishing the year showing price rises. Overall, national average dwelling prices rose 1.1 per cent in December and 2.3 per cent over the full year. Sydney and Melbourne were the top performers, both with annual gains of 5.3 per cent, although only Hobart ...
Details
More than a recovery - rates and FOMO drive a new boom
Market comment: More than a recovery - rates and FOMO drive a new boom
Writing in The Guardian, Martin Farrer, the publication's UK/US site editor recently posed a headline question: “From freefall to boom: what the hell is happening to Australia's housing market?” That's a very interesting question, and this month we set out to answer it for you. Mr Farrer backed up his editorial question with a reminder of our recent past: “Earlier ...
Details
A new year lies ahead and falling prices are left behind
Market comment: A new year lies ahead and falling prices are left behind
There's no longer any doubt about whether Sydney property prices are once again enjoying the uplift from what can only be described as a ‘boom'. The market has recorded its fastest turnaround in decades, with house prices rebounding almost $50,000 last quarter, as shown by Domain's September House Report. This new property boom is producing strong results in Sydney's auction ...
Details
Boom or bubble: what are we seeing?
Market comment: Boom or bubble: what are we seeing?
Are we really seeing the start of another sustained property market boom? It's too early to say, although rising Sydney housing prices have certainly been in the news of late. Auction clearance rates have stayed above 70 per cent and house values in Sydney jumped by 1.9 per cent in September. And just to add fuel to the fire under ...
Details
The recovery begins, but how far and how fast will it go?
Market comment: The recovery begins, but how far and how fast will it go?
There's general agreement among analysts that the Sydney property market has hit its bottom point and is now on the road to recovery. But there are many differing views about where we go from this point onwards. The August property sales results have provided some encouraging signs of recovery that offer a guide to what the future holds. CoreLogic figures ...
Details
We’ve seen the bottom and now await further developments
Market comment: We’ve seen the bottom and now await further developments
The media have given a great deal of coverage recently to Sydney property prices appearing to have found the bottom of the slump and even offered opinions about price rises in the very near future. When it comes to the housing market downturn, the ABC's Michael Janda says it's over…at least for now. “Don't take my word for it. A ...
Details
Sydney property reaches its turning point as APRA acts and rates cut again
Market comment: Sydney property reaches its turning point as APRA acts and rates cut again
There's been a recent ‘bounceback' in Sydney's house prices, albeit a rather small one. But first, look back at the first three months of this year that saw prices fall by 3.9 per cent. Prices in March were nearly 13 per cent below the peak of June 2017, so the market was searching for a bottom. There are signs that ...
Details
An election, a rate cut – and a bottom in sight
Market comment: An election, a rate cut – and a bottom in sight
The Sydney property market has been given some much-needed encouragement by the recent federal election result and by the Reserve Bank's cut to its cash rate. For such an important economic sector that has most recently been best known for a record price fall, this couldn't have come at a better time. At its June meeting the RBA did what ...
Details
A Coalition victory, an unchanged cash rate, and signs of stabilisation
Market comment: A Coalition victory, an unchanged cash rate, and signs of stabilisation
An election can be a real game-changer for the Sydney property market. Or it can simply be a sign that things will continue much as they are which can also be significant. In this year's election the Coalition's victory means the government will not be making any major policy changes with regard to housing, bringing a sigh of relief to ...
Details
Prices down, construction down, even interest rates may finally come down
Market comment: Prices down, construction down, even interest rates may finally come down
So, just how bad is the Sydney housing price fall? So far, it's a good example of the old adages: “What goes up must come down”, and “The bigger they are, the harder they fall”. We enjoyed the ride up, but the ride down isn't much fun. It's notable that Sydney has had the biggest yearly slump of all Australian ...
Details
Property prices await elections, a rate cut, and the return of investors
Market comment: Property prices await elections, a rate cut, and the return of investors
Most property cycles in recent years have seen the Sydney market recover pretty quickly after a period of price correction. For a time, people don't want to sell their houses in a falling market and buyers hesitate in case the prices are going to go lower, so the whole market turns quiet before it regathers, and then the next upwards ...
Details
Prices fall further and so might interest rates
Market comment: Prices fall further and so might interest rates
At its February meeting the Reserve Bank left rates just where they've been for what seems like years – and it has been years, going on for three of them. This has caused a lot of comment among members of the financial fraternity, but even the fiscal experts disagree about where interest rates should go next. "People with principal ...
Details
The bottom of the market could be in sight – just maybe
Market comment: The bottom of the market could be in sight – just maybe
2018 is over and 2019 is underway. This much we know, but the future direction of the Sydney property market in this new year is anything but known. The last year ended with prices still falling across the Sydney area after a record ten per cent drop, and there were signs the new year would bring more of the same ...
Details
Chicken Little meets the RBA and prices fall
Market comment: Chicken Little meets the RBA and prices fall
Chicken Little might have been right – the sky is indeed falling. We've seen Sydney home prices go up, and up and further up, until they reached levels that can only be described as ‘sky high'. Now, for several reasons we'll discuss in more detail later, they've plummeted. Will house prices ever recover? Eventually, yes, but probably not in the ...
Details