Local Real Estate Activity – R&W’s June Synopsis
Over the past few weeks we have seen real estate move from a strong seller’s environment back to a more balanced market place with supply & demand beginning to balance out for the first time in many months.
Following the May interest rate increase (no change in June) we saw the last nine months of bullish market activity move from growth to stabilisation. R&W has continued to record some strong sales over the past month (in particular a new Street record for 17 Yatama Street & a strong result at 17 Sandy Bay Road) – however the aggression that buyers had displayed so far this year has recently returned to more normal levels & buyers are becoming a little more cautious.
Looking at the most recently released economic data – particularly figures on auction clearance rates, home loan approvals show that a change in the market began in April however there was no real noticeable effect on our area until May. As active buyers will have picked up, attendance to open homes has dropped in recent weeks over the general market place, however we are still enjoying a strong response to the apartment market.
Taking a peak at Sydney wide figures, in the last year, Sydney house prices have grown at three times the historical annual average. Sale figures achieved in 2010 have been as strong as we have seen since the peaks of the market in 2003 & 2007. Current price levels seem to be stabilising rather than racing forward as they have been. We are likely to see a trend come back into the market of buyers upgrading, rather than renovating in our local area and with a currently limited supply of property this will ensure values & demand remains positive.
Indications from the Reserve Bank are suggesting that interest rates are likely to remain on hold for some time. Some economist’s suggesting that the next movement we may see is a slight decrease while we move through the uncertainty in Europe and the repercussions of the reaction to Rudd’s super profits tax.
From a local vendor or purchasers’ point of view – what remains more important is that you achieve the right property move for you. Those that purposely try to time their transactions tend to fail. By acting at the same time you benefit from the relativity of the market & by waiting for prices to change up or down is likely to cost you the opportunity of securing your perfect home!
We look forward to seeing you at our opens and auction this weekend! Click Here for our inspection times.
Best Wishes,
The Team at Richardson & Wrench Seaforth Balgowlah.
To keep an eye on this week’s reported Seaforth real estate, Clontarf real estate, Balgowlah real estate, Balgowlah Heights real estate and North Balgowlah real estate Click Here*
*Sales are as reported by Australian Property monitors on 4/06/2010
4.06.10