The Sydney house market has shown big resilience to the Global Monetary Crisis, and has had somewhat of a rapid recovery due to the RBA cash rate being three% one of the lowest rates in more than 50 years, vacancy rental rates at 1.five%, and stock levels 30% less than this time last year.With interest rates at record lows, First Residence Owners Grants being provided, and rents rising 12% more than the last twelve months, each investors and owner occupiers are jumping back into the house market.The two principal drivers for the resurgence in the lower end of the market has been the First Residence Owners Grant, incorporated with the lowest interest rates in more than 50 Years. Buyers in the lower price brackets are reporting that it is only costing them another $50.00 a week to order their personal home, and right after being at the mercy of landlords more than the past three years with big rental increases, they are alot more than content to say Goodbye Landlord.The hous e market has produced a big U-turn from 2008 with auction clearance rates in 2009 hovering about 65% to 70%. Previously they were about 50% and under.Here's a rapid snap shot of what is happening with Sydney house at present:- Units and homes up to $650,000 are hot, selling in a week.- Houses up to $4 million on Lower North Shore, Eastern Suburbs, and Mid North Shore, really robust due to absolutely no stock, worst stock levels in ten years. This market has stabilised now and will start to creep up given that of provide and demand issues. I have bought more than $11 million worth of house in Mosman, on behalf of my clients, in 7 days and there was competition on all of them.- Houses more than $4 million are nonetheless relatively soft in all the blue ribbon regions and stock levels are nonetheless low but so are buyers, exactly where in the other price brackets talked about there seems to be a construct up of buyers occurring due to low levels of stock for 5 months now.One m ore reason stock is tight is given that owner occupiers are picking out to sit on their hands in worry of losing their jobs and uncertainty in common, so the perfect thing to do is absolutely nothing.At present we are now entering into what I call a locked market which is a vicious cycle exactly where no one sells given that they are as well scared they will not uncover something and have to rent. And if they choose to rent they are worried in this upward trending market that they will get caught out if they want to obtain given that they are locked into a lease.Please also note rising unemployment does not necessarily dampen a house market. In the house boom of 2001 to 2003 the unemployment rate averaged about 6.74% to as high as 7% and the cash rate was fluctuating from 6.75% to 8.25%. Unemployment right now is presently at five.4% and the cash rate is at three%.For additional information on this press release, or for honest, independent suggestions on what the house marke t is definitely carrying out in 2009 call Peter Kelaher, Sydney Buyers Agent and Managing Director of PK Property Search & Negotiators Pty Ltd on +61 ()419 200 018.North Shore & Northern Beaches Workplace:Cremorne Town CentreSuite 13, Level 1, 287 Military Rd, Cremorne NSW 2090 AustraliaPhone +61 ()two 9904 3444, Fax +61 ()two 9904 3555City - Eastern Suburbs - Inner West Workplace:Australia SquareLevel five, 95 Pitt St, Sydney NSW 2000 AustraliaPhone: +61 ()two 8249 8180, Fax +61 ()two 9904 3555
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