R&W Marrickville/Hurlstone Park Market Update 07.09.2019
The Auction results are in for August :
Well what a difference a year makes. This same time in 2018 we were looking at comparative clearance rates of 68% for Marrickville, 34% for Dulwich Hill and 25% for Hurlstone Park.
The reduced number of quality homes currently available is without doubt the major reason the recent clearance rates are so high.
With stock levels at record lows it is no wonder the pressure is now being firmly applied to buyers as the fabled Spring sellers have failed to materialise as yet.
I remain hopeful this will change in the ensuing weeks not months but it won't be quick. So we will remain in a market where the buyers will be playing musical chairs well before owners traditionally stop listing near Christmas time.
Interest rates were kept on hold this month with the Federal Reserve relenting from another cut.
I know it may sound unusual for a real estate agent to say this but I sincerely hope they continue to resist and leave rates alone.
Whilst everyone loves lower mortgage repayments, I worry that if we reduce the value of our currency too much it will impact everything adversely. We've seen the long-term effects of "quantitative easing" in the United States after the Global Financial Crisis in 2008 and it isn’t pretty. I would prefer we hold the line as much as possible at the current 1% baseline rate or I fear we will slowly enter the same waters our U.S. neighbours have been trying to navigate their way out of for the past decade.
Stagnant wages growth, poor consumer spending and below average inflation rates are the big dangers our greater economy faces in the next few years. It is unchartered territory for our nation and a problem we haven't seen the likes of for generations. You'd be very hard pressed to find anyone who remembers having a home loan rate below 5% since the 1950's and 60's.
Hopefully this situation will improve gradually over time to take the heat off the Reserve.
Have a great weekend!
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