Friday, September 25, 2015

Auction clearance rates have been on the decline for a number of weeks now in Sydney. I simply put this down to one thing which is vendors expectations. Auction reserves have caught up to the growth which occurred in the first two quarters of 2015 in conjunction with the flattening out of property sale prices. A decline in clearance rates will always indicate a reduction in price growth from the previous month whether that be a period of 10% growth followed by 5% growth or a period of 2% growth followed by -1% growth. Therefor rather than clearance rates indicating positive or negative growth they are more so a reaction of the previous months activity in comparison to the current climate. You may have declining clearance rates in an upward market and vise versa.

It is expected that a large amount of stock hitting the property market following the October long weekend. If you are a buyer whom may have 'thrown in the towel' due to the affordability of local homes then now may be a good time to sharpen your pencil and seek pre approval particularly with some banks tightening lending criteria.

With an isolated increase of investor interest rates last month by the RBA we believe pressure to rate interest rates due to a 'housing bubble' may have eased. We had predicted the cash rate to remain stable at this months RBA meeting which was the case. The RBA can now continue to review the local economic environment in it's entirety and set rates accordingly.

Beat the rush and get your property on the market before the October long weekend rush, call David on 0412 261 077 to discuss