The lowest stock levels in 20 Years
Well once again we are at emergency levels in regards to stock in the following areas.
Lower Nth Shore, Upper North Shore, Northern Beaches, Eastern Suburbs and the Inner West is not much better. Please note this is in all price ranges up to $20million.
An example of just one area that is under supplied severely is the Lower North Shore of Sydney, with agents reporting that there is 48% less stock than this time last year.
So why is this happening year after year.
I can put it down to a number of reasons and the first one is that people are not prepared to sell until they can see that they have a choice of properties to buy. The problem with this is that it creates a Mexican standoff and everyone ends up doing nothing. One of the other reasons is stamp duty.
This is a massive expensive moving transaction and people are just choosing to stay where they are and put that money into a renovation. In certain areas especially the Upper North Shore properties have been snapped up in volumes by the Chinese leaving local buyers very little to choose from.
The Wahroonga to Artarmon property market has been over inflated by these Chinese buyers who have been very aggressive in what they pay for these properties.
Will it get better in regards to stock levels, I doubt it very much, and the only good thing that we are reaping out of this is that prices are not dropping much at all, and in most of these areas going up. Now let's talk interest rates, 1.75% lowest cash rate in history, and first move since May 2015. Well with stock so low, and interest rates at an all time low, the market will continue to grow slowly and right up until Christmas in the areas I have mentioned above. So if you are waiting for the market to drop before you buy, you will be waiting a long while for this to happen.
PK's Property Market Predictions
There is a huge amount of buyers that have not been able to buy since January this year, and probably won't be able to find anything throughout the winter.
Because of the supply and demand factor I believe that the market will be strong during winter because of lack of supply, but whatever you do don't hold your breath for Spring.
All these buyers from the beginning of 2016 will all be backed up ready to pull the trigger in spring, but i really don't believe that there will be enough stock to satisfy their appetite. Over the last five years the stock is just getting lower and lower in certain areas every year, and I don't see this improving in the near future, actually I see it getting worse.
PK's Hot Tip
One of the advantages we are giving our clients at present is the opportunity for us to find them silent sales, that is properties off market not advertised. If you would like to have an edge in this current market feel free to give one of our buyers agents a call today on 99601066.
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