Sydney Property Market Update 04/05/2019
The Auction results are in for April:
The first fairly obvious thing to notice is the drop in volume across all three suburbs.
This is understandable when you consider the amount of disruption that took place last month with school holidays, public holidays and Political elections past and present combining to compromise the natural mechanics of an Auction campaign.
Despite this Marrickville managed to maintain an above average clearance rate of 59% . This once again illustrates how consistently popular this postcode has become in any market.
Dulwich Hill steadied the ship at a break even 50% clearance rate after a sub par effort in March even though it was from a very low sample of only eight sales. Moving forward we'll need to see more to suggest "Dully" is out of the woods yet.
And even though Hurlstone Park rocketed to a perfect 100% clearance rate once again this was only across three sales. Still, it's a whole lot better than 33% or zero.
Already I've seen the expected increased number of Auction campaigns this week as we get back to business in May.
Finally I'm going to stick my neck out and make a prediction for the results of the next meeting of the Reserve Bank of Australia where top of the agenda will surely be the decision to adjust nominal interest rates.
This is the first time for probably years, rather than months, it is a real prospect they will make the move, with downwards the obvious direction.
I don't think they will - yet.
I know in recent Federal Elections it has not been uncommon for the Reserve to touch rates without fear or favour of how it may affect the prospects of either major party. This time however, we are coming off the longest period of inactivity in our history so moving them down in the middle of an election campaign where there is an extremely strong likelihood of the government changing, is an entirely different matter.
I think they'll balk and leave it for June or beyond.
I'm happy to be wrong, however the next unpalatable issue to consider if rates do go down is exactly how much of the decrease the major banks will pass on to their customers. Or in my opinion how LITTLE they will, if you know what I mean, which is more likely.
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