There
is no doubt that the freight train that is the Sydney property market has been
on the move this year and prices in many areas have sky rocketed. I have been
selling property for over 15 years and the current climate reminds me of mid 2003
when the market was on fire (late 2003 was very different).
High
auction clearance rates, packed open houses and lightning fast sales are all
hallmarks of a white hot property market…hang on…I’m a bit confused?
On
one hand we read that the Australian economy is in a precarious position and on
the other property prices are soaring?! China is slowing down meaning the faster
part of our 2 speed economy is in danger. Shouldn’t this mean we should all be
a little cautious?
The
bulls say that there is a shortage of property and new housing and as a result
prices will continue to rise. The bears on the other hand point to housing
affordability in comparison to global markets and point out how far prices
could fall here.
One
thing is certain, predicting what will happen in the future is impossible but
in my humble opinion I think we should all be a little bit careful. Low
interest rates are tempting buyers into the market but my guess is that they
won’t be at record lows forever. I’m certainly no economist but if the job
market is softening, China is slowing and rates have never been lower you
should have a good think before you sign on the dotted line.
There
is never a bad time to buy a family home that you can afford but affording it
means factoring in that things will change, that’s one prediction that I am
happy to make.
David
Murphy owns an independent real estate agency in Sydney’s lower north shore –
feel free to call ON 02 9968 2088 or email with questions david@davidmurphy.com.au
