In the spirit
Wednesday 05 Dec 2018
The festive season officially started this week so it’s frustrating that reports about the residential property market have been far from joyful. Therefore in the spirit of the holiday season and, most importantly, on reflection of the facts and statistics I’m here to tell you that there is still a lot to be thankful for.
I’m not going to pretend that it is a fairytale. I can’t guarantee that a Christmas wish list asking for record breaking auction results can be delivered but I will reassure you that presents are still being delivered with buyers active and property transactions taking place.
Value is still there and the prospects for the market remain solid now as do the prospects into the future.
I’m not trying to gloss over the fact that there has been a downturn but I’ve been in this business long enough to acknowledge the reality that adjustments do happen and that is why perspective is always important.
That’s because the undeniable fact is that even with those inevitable adjustments Sydney property prices have maintained a steady upward trend since the 1980’s.
Value does continue to grow and continued population growth in Sydney, continued strength in the job market and interest rates still at record lows the fundamentals for residential property remain solid. As the chief economist at CommSec said this week about the change in the current market it is ‘being driven by a rebalancing of supply and demand rather than weakness….’
Of course the other factor coming into play at the moment is the tightening around lending driven by banks cautious in the shadow of the Royal Commission. It has definitely changed the dynamic of the market but to be quite frank I believe that recalibrating lending expectations is a good thing for the long term strength of the property market. It is best for everyone in the market for value to be based on strong foundations and good financial decisions.
So we definitely have a lot to be thankful for and a lot to look forward to over the coming months.
And in the words of expert auctioneer Damien Cooley, “There is no question that buyers have the upper hand in negotiations right now. But what buyers don’t have is the title deeds to the property. The owner is really the decision-maker on whether they sell or don’t sell.”
And our team of expert sales agents are here ready to ensure vendors have the right information to make the right decision about their property.