What's in store for 2016
Well the market has certainly taken a breath in some segments of the property market, but others seem to be chugging along quiet well.
It's been a breath of fresh air to see the competitive edge come off the property market in certain areas, but unfortunately my news for buyers of family homes on the Lower North Shore and Eastern suburbs moving into 2016, is don't hold your breath.
This market is extremely tight, the supply is simply not there, and demand is huge. Agents are reporting that good family homes are hard to come by, and stock levels have been the lowest in 20 years.
Wherever the supply is tight, the demand will always be high, and this segment will always hold its own in any market.
On the Lower North Shore at present houses from $2 to $6 mill are very hard to come by, and semis up to $2 mill are non-existent. Units up to $1.5 Million are also very hard to find because investors are not selling them because of their strong capital growth, and good rental income.
So don't be fooled everyone when you see Sydney's auction clearance rate overall at 59%, please understand that areas like the lower north shore hit 80.4% last week , the northern beaches was 69%, eastern suburbs 74% and western suburbs as low as 34% in areas. So basically the outer west suburbs are returning really bad clearance rates, and therefore bringing down the overall auction clearance rate. It's very much a two speed market at present and will continue to be like this over 2016.
All in all an adjustment that needed to happen, but a very soft landing overall and there's no doubt things will start to crank up again come mid January 2016.
PK's Property Market Predictions
I see the market running warm to hot right up until Christmas in certain price ranges. If we do get another interest rate drop in November, and the stock doesn't come on in huge quantities the market will kick again like last year into 2016.
I think 2016 will be a better market to trade in be it if you are selling or buying. A lot of people were scared to sell before they bought the last two years in fear they would be locked out of the market.
We will now be entering into a little bit more of a subdued market, but please don't be fooled everyone there is still no stock out there so I think the market in certain segments will be very strong in the first 6 months of next year. Have a great Christmas and sensational new year everyone and thanks for all your support.
PK's Hot Tip
I think 2016 will be a better market to trade in be it if you are selling or buying. A lot of people were scared to sell before they bought the last two years in fear they would be locked out of the market.
We will now be entering into a little bit more of a subdued market, but please don't be fooled everyone there is still no stock out there so I think the market in certain segments will be very strong in the first 6 months of next year. Have a great Christmas and sensational new year everyone and thanks for all your support.
Also don't forget PK's 2 min video tutorials on youtube showing you hot tips and negotiating tricks of the trade.