R & W Marrickville/Hurlstone Park Market Update 02.11.2019
"We live in unique and strange times."
This is perfectly illustrated with the current status of the Sydney property market and specifically the Inner West.
We’ve seen things peak in mid-2017 with unheralded prices being achieved followed by the longest correction I’ve been involved in since I began my sales career back in 1996.
This all changed again literally the day after this year’s Federal election in May and has now reached a stage where many properties are selling at price levels close to or even above their previous highs.
Throw in historically low interest rate levels that look well and truly here to stay as well as low inflation and wages growth and you have a cocktail of ingredients the like we’ve never seen.
But the one factor that’s the most noticeable to me is how less frequently owners are choosing to move. And I emphasise the word “choosing”.
Many of the sales I have seen recorded this year have been for reasons very much out of the owners choosing. Examples include deceased estates where the home requires far too much work to be lived in or leased out by one of the beneficiaries, a separation where none of the parties involved are financially able to buy the other/s out, and significant mortgage stress or other unfortunate monetary circumstances beyond the current owner’s control.
These types of sales are making up an ever-increasing percentage of the total volume.
But what’s more interesting is the fact they are not any higher than where they have been since the dawn of time. There’s been no real spike in the average number of people passing away, separating or under financial pressure.
What has changed massively though are those owners when faced with the possibility of moving are “choosing” to stay put.
Without going in to why this is occurring (that’s a whole story in itself) the end result is a selling market where buyers have limited options.
Low turnover is the here to stay I think and this will see many owners stay longer in the family home and hold that investment property well into their later years.
How that will impact prices and affordability in the future nobody really knows. But if I was a betting man low supply eventually leads to high demand as the number of people wanting to get on the property ladder doesn’t change dramatically.
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