The hidden headline
Wednesday 26 Apr 2017
It is extraordinary. It’s like every possible indicator is pointing to why the market should not be holding, let alone as such strong levels, but what is becoming ever more obvious is the fact that no statistic can measure our national passion for property.
The story behind every headline about the state of the market is the fact that our faith in bricks and mortar as the preferred option to invest appears unshakeable.
The first home buyer debate is the clearest indication of that faith. The much reported heartbreak of frustrated first home buyers is so intense for the very fact they desperately want that opportunity to invest in residential property.
It doesn’t mean the market is immune to bubbles or busts but it does mean most covet their own piece of property no matter the market.
Now I understand the concern about the level of debt homeowners face to secure a Sydney property. But at the same time I don’t underestimate the level of consideration given before committing to a mortgage.
Our team at Morton sell property in from the CBD and city fringe, in Pyrmont, Green Square and Crows Nest out to Wentworth Point and even further out to Penrith. We list properties from $500,000 to more than $5 million and as I have said repeatedly over recent months in every market in which we operate residential property is in demand. Buyers are seeking property and prepared to pay good value prices to secure it.
But I can almost guarantee that not one of our buyers, for the studio apartment through to the multi-million dollar harbourside penthouse, proceeded with their purchase without doing the numbers and looking to the future value of their financial investment.
Interest rates are at record lows so it is inevitable they will rise again. When and by how much is anybody’s guess but our team is already seeing buyers factoring in that potential as they evaluate the cost versus value scenario of their purchase.
It is crazy busy but not because buyers are being crazy stupid. I think that’s why it is so astounding. As I’ve been saying all year, the market is strong but it remains sensible.
Now that should be the headline.