Summer 2016/17 market wrap

Hot summer market builds momentum into 2017

It was all good news for sellers during the hot summer months with auction clearance rates at elevated levels as a strong level of buyers competed over the low amount of stock on the market.

The property market finished 2016 strong, closing out what was an impressive growth year for the Sydney market. The story remained much the same for the start of 2017 with prices again on the rise. In fact, Sydney’s 12-month growth rate is now 18.4%, the highest annual growth rate since the 12-months ending December 2002.

This increase in pricing has also been reflected in the rental market over summer where there has been a surge in demand for rental properties as more and more would-be home buyers are being priced out of the market. Our rental open home attendance levels have increased dramatically over the past few months, backing up the data.
The RBA also left interest rates on hold in both December and February at the record 1.5%, adding to the market stimulation over summer.

What are your market expectations heading into the autumn season of 2017?

Will there be any easing for people looking to buy in autumn?

We expect the market to continue to favour sellers in the autumn months. Equity markets are pushing higher again and the US fed have increased interest rates by 25 basis points, however, we believe the Reserve Bank of Australia will leave interest rates at a record low for the foreseeable future.

In addition to the economic climate, there is no indication that stock levels will be increasing any time soon to fulfil the demand from buyers meaning that prices are likely to continue their upward trend.
All signs point towards autumn continuing to be a good time to sell for those looking to unlock the value in their homes and take advantage of the premiums people are paying in order to get into the market.

Craig&Kiki

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Craig Sewell
Craig Sewell is the Foundation Director for Mint360 Property a leading real estate firm based in Sydney’s exclusive Eastern Suburbs. He holds the record for selling the most expensive house in Maroubra for $8 million and has sold shopping centres for up to $15 million. Craig’s most important connection is to his family and the community they live in. That’s why, when he is not selling property, you will see Craig and his four children getting involved in local life – he is a strong believer in the development & education of children giving time and money to Coogee Public School P&C Surf, Coogee Minnows Junior Surf Lifesaving Club, Coogee Rugby Club (The Seahorses) or simply enjoying the fabulous beach-side lifestyle on offer in Sydney’s Eastern Suburbs.
Craig Sewell

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20th March 2017

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