Kiki’s Monthly Market Update – February 2018
| Coming to the end of summer, the property market is back into full swing enabling us to get our first real feel for sentiment in 2018. My initial assessment is that it is a healthy but certainly not overcharged market, which is showing up in common indicators such as auction clearance rates for Sydney which are hovering around 70% over the last couple of weeks. This is supported by what we are seeing at our open for inspections with plenty of buyers out there, but being somewhat pickier, meaning good properties are still being snapped up quickly, whereas those that are average or in fringe suburbs are proving tougher to sell. The changes in lending practices introduced last year are still having an impact, with relatively few investors compared to owner occupiers amongst the buyers.
Turning to the most recent economic information put out by the analysts, there is still positivity around the prospects for economic growth in 2018 both locally and across the globe, with the Reserve Bank forecasting growth to exceed 3% in Australia after convening for its first Monetary Policy meeting this year. This is supported by continuing strength in the employment market which, if it continues, is being forecast to finally kick start some wage growth and inflation later this year. Wage growth would provide welcome relief for Australian households with data showing personal insolvencies increased significantly in 2017, a sign that households are struggling with high amounts of debt. |
| This newsletter contains general information only as of 28th February 2018. Before making any decision or taking any action that may affect your finances, you should consult a qualified professional adviser. Kiki Bermudez or Mint360property shall not be responsible for any loss whatsoever sustained by any person who relies on the information in this newsletter. To unsubscribe click here |
