PK's Sydney Property Market Update August 2024
Interest Rates On Hold - Where to now?
Interest rates look like they are on hold for now, and could very well be coming down before Christmas.
Anyway, let's see how we go in regard to that scenario, and in the meantime what's it looking like for Spring?
Well, the agents are all talking again saying that there is a stack of listings coming up in spring, but I must admit I have heard that for the last 15 years. What the general population doesn't understand is that because the listings are so low in Winter, it therefore creates a build-up of buyers over that period that end up coming into spring with a lot of vigour wanting to get the deal done before Christmas.
So, what I am eluding to is that I do believe on the Northern Beaches of Sydney, and the Lower North Shore of Sydney, that demand will outstrip supply from here until Christmas. Naturally, when this happens, prices rise on quality stock and also average stock, because fear of missing out starts to rear its ugly head.
Anyway, make sure you read my hot tips section, and market predictions below today, as I am trying to crystal ball a few things from here until Christmas.
PK'S Sydney Property Market Predictions
The markets are tipping that Labour is getting ready for an early election this year sometime, if that does arise it may upset the spring market a little.
The next 5 months until Christmas is going to be a very volatile time in our economy and the world economy, especially with the U.S.A. elections now in full swing. If Trump does get in, and as we all know he is promising to bring peace to the Middle East and Ukraine immediately, and should that happen we will all be in a better place.
If I bring the focus back to Australia now the Reserve Bank will be very focused on two things moving forward, and that is the inflation figure and unemployment. They will be happy to see unemployment rise, but definitely not inflation and just to give you an idea of where inflation presently is around the world, I picked a couple of countries for you as examples.
Australia 3.8%, New Zealand 3.3%, U.S.3.0%, U.K. 2.8%, Canada 2.7% .
If the Reserve Bank decides to drop interest rates, there is a good chance they will do it before Christmas to stimulate the retail sector which is having its worst run in 30 years.
If people feel as though the pressure is coming off them in regard to their mortgages, they might start to spend a bit more at Christmas.
The reverse side is that inflation is sticky, and the reserve bank does not want to fuel any more spending and therefore doesn't drop rates till the first quarter of next year. That scenario, in a nutshell, is death by a thousand cuts to retail and Christmas spending I believe could be the worst ever recorded.
PK'S Hot Property Tips
First of all, buyers don't wait till spring if you see something you like buy it now. I am going to stick my neck out and say if there is an interest rate drop this year, the best time to buy would be now until that happens. And when interest rates start to drop, that's when we will then enter the next property boom that will last for 3 years. Ok, I got that off my chest let's see what happens.
Please feel free to Call me today for a confidential chat in regards to helping you purchase your next home or investment property. Peter Kelaher 0419-200018