PK's Sydney Property Market Update June 2022
Market adjusting hard for compromised property
Well, that was a surprise 0.5% rise by the RBA, a bit more than I thought, but maybe they want to get this over and done with quickly.
Their aggressive stance has definitely scared the market in certain price brackets, which has mainly been the lower end where there is an oversupply of stock.
The upper end is never affected as much as the lower end when interest rates start to rise, unless they get really high, but what also is coming into play at present is higher inflation costs which haven't been seen since the global financial crisis in 2008.
The RBA is way too late again regarding raising interest rates, they should have started implementing rises June last year.
Anyway, enough about interest rate rises, at the end of the day people are trading property for all sorts of reasons, and if they can't keep their property, they will probably downsize. If they can't borrow enough money from the bank, they will just buy a property for a lower price, and the list goes on.
We are now in more of a normal market; therefore, buyers are taking their time and should it not be an A grade property, or a strong B, everything else is struggling.
PK's Property Market Predictions
I think in certain price ranges and areas, and property that is compromised, we will see it continue to fall from here until Christmas.
I don't think the RBA will be as aggressive with interest rates as the economists say, and if they are, lookout for the borrowers coming off 1.89% fixed to a possible 5% variable, and petrol at $2.20 a litre and $10.00 for a lettuce.
PK's Hot Property Tips
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Peter Kelaher 0419 200 018