PK's Sydney Property Market Update July 2022
PK team buys $40 million+ worth of property for their clients in June 2022
Well, it's now July, mid-winter and everyone has exited Australia to search for the sun in other parts of the world, and I don't blame them after being locked up for two years.
Auction clearance rates are sitting at around 50% which is a true indication of winter, and everyone on a well-deserved holiday.
I suppose the hot topic on everyone's lips at the moment, is how far will interest rates rise from here until Christmas. All I know is that the RBA is on a mission to lift them quickly, how far they will go by Christmas who knows, maybe 2% or a little over.
We all know that interest rates could not have stayed at pandemic emergency levels forever, but for the RBA to come out and publicly say that interest rates won't rise till 2024 was a reckless statement on their behalf.
With an estimated 175,000 first homebuyers taking confidence from this RBA statement and purchasing new homes, I do hope they can afford these increased payments moving forward.
PK's Property Market Predictions
I think the property market in general will be fairly rocky until the end of this year, due to the general public not really knowing where these interest rates are going to end. I also think the RBA will be a bit clearer on their vision as we move forward on how high they will go, and when they will end.
Please understand everyone, total A-grade and B-grade properties are hard to find and also still have competition on them. The upper end of property, from $5million upwards that is fully renovated, is still as strong as I have seen it as stock is very low.
PK's Hot Property Tips
I think it's great to be a little particular at present in regard to what property you are looking for, but my advice to buyers at the moment would be if you see something you really like buy it. At least you know you are not paying 2021 prices, and you will be in there for at least 10 years, so don't try and pick the bottom of the market.