Can’t you see the positives?
Tuesday 02 May 2017
Why the negativity? It amazes me. There is so much to be positive about in terms of the residential property market in 2017 and residential property values across Sydney. I find it frustrating that the focus is not on how fantastic the market is. Can’t we cut the negativity. There is no reason to be down. The market certainly isn’t.
There is no doubt the market is hot right now. Great prices continue to be secured across all price points and suburbs. Listings are strong and the increased supply that has come online since January this year is being easily absorbed. Auction clearance rates remain around 80% and demand is such that many properties are being sold prior to auction.
So why always look for the negative?
Of course the incredible strength cannot last forever but by goodness it’s lasted longer than any market commentator imagined. Most expected the market to ease at the end of last year. A slowdown in listings in the final months of 2016 was touted as the beginning of the end.
But it didn’t end. So at this point I would say announcements that Sydney has reached the top of the property cycle are premature.
But at the same time if right now does represent the top of the cycle surely that is something to be celebrated rather than criticised. According to CoreLogic values in Sydney are still up 16% year on year. That is extraordinary.
Focus on that value growth and any nervousness about the foundation of the market should fade.