Kiki’s Monthly Market Update – March 2017

So far, March has been an extremely wet month here in Sydney and I’m sure I’m not the only one wishing to see some sunshine again soon! Fortunately, it hasn’t dampened buyer energy with plenty of activity still in the market. Recently I chose to run two of my properties all the way to auction due to the buyer competition, resulting in 13 registered bidders and prices well above reserve and my clients’ expectations. It is because of recent activity like this that I believe the market should stay quite strong for now, with the main longer term headwind being the interest rates creeping up as banks face cost of capital pressure as well as pressure to dampen investor activity.

Turning to the most recent economic information put out by the analysts and rising house prices continue to be a key topic of conversation. Despite this, the RBA has again kept the cash rate on hold, continuing to comment on the gradual transitional economic recovery post the mining boom. However, over in the US, the Fed has recently raised interest rates by another 0.25% as expected. Due to global financial pressures, the big four banks in Australia are citing increasing cost of capital as the reason for off cycle interest rate rises lead by the NAB earlier this month.

This newsletter contains general information only as of 29 March 2017. 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

29th March 2017

Kiki’s Monthly Market Update – March 2017

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