41 VISTA ST GREENWICH

MARKET UPDATE

It’s been a while since my last market update so now that I have finally put pen to paper I am glad there are some positive aspects of the property market to write about.

House prices look as if they are stabilising and heading in right direction, Interest rates are at low levels and look as though they may even go lower, Auction clearance rates have improved, unemployment is low by world standards and the weather is also looking great.

Here are some of the key numbers (Source: RP Data):

• National property prices are up 1.4% for the month of September. This is the 4^th consecutive month on month increase in prices and the largest capital gain since March 2010.

• National property prices are up 0.8% since the beginning of the year and it is no surprise that it has come after the RBA has cut rates by 0.75%.

• Interest rates are almost at record low levels. The recent rate cut means the official cash rate is at 3.25% which is only 0.25% higher than GFC levels.

• Average days on market has dropped from 62 days to 58 days over the past 12 months.

• Price discounting has also dropped to 6.7% compared to 7.5% for the same time last year.

• Auction clearance rates for the past 4 or 5 weeks have been consistently over 60% which is a notable improvement on last year where clearance rates struggled to reach 50%.

• Stock levels are still on the low side and there are currently 16% fewer properties on the market compared at the moment compared to the same period last year.

• It seems that the Sydney market bottomed out in May this year after falling 5% since November 2010.

• Sydney property prices have increased by 1.5% in September.

• Over the past 12 months Sydney prices are up 0.9%. This is the first rise since June 2011.

So what does the future hold?

The simple truth is I really don’t know. Based on the numbers and my experience I feel that we have passed the worst and are entering a period of stability. Hopefully a period of stability with lower interest rates, solid Auction clearance rates should eventually lead to the market returning to a period of growth.

I am extremely keen to hear what everyone else thinks so feel free to email me with your thoughts and predictions.

Finally, as everyone is no doubt aware the end of the year is fast approaching and anyone wanting to sell before the end of the year doesn't have much time left to get their property on the market. If you are in fact thinking of selling please contact me to discuss your options.