Wednesday 04 Dec 2019
Well, it seems that some experienced statisticians and economists disagree with me. It happens. I’m certainly not unhappy to read that sources I respect predict property values will continue to rise into next year. I hope it does, and while I’m not automatically banking on that outcome, I’m still feeling very positive about the prospects for Sydney property. How can that be?
Look, the numbers out from Core Logic this week are positive and I totally understand why the growth in value and resurgence in demand that we have experienced in recent months appears to lay a path for continued positive movement. A national rise of 4.7% since June with Sydney, in particular, rising 2.7% in just the last month is to be celebrated.
But I do still feel that we may face some rocky times ahead. I am not ashamed to say that my views are not based on analysis of statistics, rather they come from my reading of the mood on the street based on my years in the business. I’m talking about ‘the vibe’ if you will. It’s nervous and I think we will increasingly see participants jumpy. As confidence ebbs and flows the market will become quite unpredictable.
Just to be clear I’m not trying to be a negative nelly here. In fact, what I want to do is encourage greater recognition for the longer-term value that the Sydney market has consistently delivered.
For those who watch the numbers closely, I’m sure there is a huge amount of relief to see that for the first time since April last year Sydney’s annual growth is sitting in positive territory at 1.6%.
But I hope nobody loses sight of the fact that Sydney property has delivered a whopping 22.2% value growth over the last five years. That’s a great return on investment and when the market is nervous that long term growth is important to calm short-term reactions.
I don’t think the coming months are going to be smooth sailing but that doesn’t mean opportunities do not, and will not, present themselves.
Our team of sales agents have the long-term experience and market insights which gives them a unique ability to help their clients identify those opportunities and to navigate potential market fluctuations. They know how to read the current vibe but always with a view to delivering long-term results and I am very confident that nobody can disagree with me on that.