Autumn market report

Momentum builds over the autumn months

Looking back over the autumn months, the property market has been the topic of much discussion along with the overall Australian economy and politics.

Caution and hesitation from investors due to the proposal to cut negative gearing tax breaks saw a sluggish start to the autumn property market in Sydney. Whilst clearance rates weren’t at the heights of the same time last year, properties were still selling for premium prices, particularly in the Eastern Suburbs, as buyers competed over the low level of property stock on the market.

The announcement of the federal election, low unemployment figures, record low interest rates and strong consumer confidence saw an injection of interest into the property market in April/May for both occupiers and investors as evidenced by auction clearance rates around the 80% mark and strong quarterly price growth figures in Sydney.

What are your market expectations for the next 3 months heading into the cold winter months? 

Will the Sydney property market growth continue?

Looking ahead into winter, we believe that the property market will continue along a similar path of growth. Home buyers and investors will be active despite the cold weather trying to take advantage of the record low interest rates and with further cuts predicted by various economists for later this year, we believe that activity will only increase.

The winter months are generally a good time for home sellers as there is typically less property stock on the market to compete with.

Whilst there may seem like a reduction of interest at open homes and auctions in terms of numbers, this will only due to the cold weather keeping curious neighbours and ‘sticky beaks’ from attending. The serious buyers will not be deterred and should still be out in force.

There seems to be a rush to snap up property ahead of the federal election and it will be interesting to see how the result will impact the property market and the wider Australian economy.