PK's Sydney Property Market Update May 2022
It's not really new news we all knew interest rates would go up at some time, as they could not stay at emergency pandemic levels forever.
You would think it is Armageddon how the media are going on at present and it's all because they were just so low for so long, that it's become front page news everywhere.
The majority of borrowers are ahead on their loan repayments at present, and please understand everyone that when the banks approve a loan, they buffer in an extra 3 percent to make sure that the borrower can afford to pay it back, should interest rates rise.
The cost of goods and services are going up and up, and our dollar is buying less and less, so inflation needs to come under control sooner rather than later, a normalisation in rates needs to occur.
That's also what is happening now after a property boom, a normalisation in property prices is occurring, and we are slowly transitioning from a nuts to normal market.
Once this election is over things will start to get back to normal, people need a roof over their head, an investment for tax purposes and building wealth, maybe a luxury holiday home, actually that's more a want than a need, and life rolls on.
PK's Property Market Predictions
We will definitely see more activity after the election with lots more property coming on, but how much of that will be A grade and B grade property still is a little mystifying. I think the market will start to plateau through the winter months, and I would say that the property market will just be flat for some time moving forward, which makes it very easy to buy and sell in the same market.
PK's Hot Property Tips
Prices are all over the place at present, so you really need someone who knows how to value a property in this turbulent marketplace, and buy it at the right price.
Call me today for a confidential chat. Peter Kelaher 0419 200 018