A pretty busy week with plenty happening in Sydney real estate.
Firstly let's talk about interest rates. As expected the Reserve Bank of Australia reacted immediately to the underwhelming inflation figures released last month and cut rates again to a record low of 1.5%.
And surprise surprise the major banks failed to pass on the full amount to its customers. I have to give them some credit though this time as they didn't just simply trot out the tried and tested but increasingly offensive and lazy excuse of "increased funding costs and lending requirements". What does that even mean really ? I always translate it to "because we can and there's nothing you can do about it."
At least they came up with something genuine that affects their customers rather than themselves and the fabled "shareholders" of course.
By not passing on the full rate cut they are able to protect their deposit holders from further pain and keep their interest rates up. This is important for retirees in particular who have watched their nest eggs slowly whittled away since the Global Financial Crisis (G.F.C.). With interest rates this low there is a compelling argument to try and protect these funds from ending up with an almost negligible return on investment. Cold comfort I know for those at the other end of the life cycle trying to get their first foot on the property ladder but a legitimate argument nevertheless.
I'll get off the soapbox now and get back to real estate and specifically Marrickville. Here are the July Auction results :
Auctions : 21
Sold : 13 (61.90%)
Prior : 6 (28.57%)
Passed In : 2 ( 9.52%)
That's a combined clearance rate of 90.48% which is the highest for this year to date.
What it tells us is two main things. One that the demand for property in the area is still very strong and two, the supply is at the lowest I have seen for a long time particularly when it comes to large family homes.
As you may have noticed we've added quite a few new properties to our menu below with more to come. Hopefully this current stock imbalance will move further towards the buyers favour in the next few months with Spring coming soon.
That's it from me. Have a great weekend and I'll see you next Thursday.