This is your Real Estate wrap for the second quarter of 2017 from Devine.
Watch the video here: SteveWrapUp Video
Hello, I’m Steven.
With the conclusion of the second quarter of 2017, and the end of the financial year, it has been a big six months for us at Devine and indeed for Sydney Real Estate.
After the compounded growth over the last three years, the Sydney market has finally become far more stable which is great news for both buyers and sellers alike, as with stability comes more certainty and confidence in the local property market. This stability has been brought about partly by the historical low cash/interest rate of 1.5%, which has been unchanged by the Reserve Bank of Australia since August of last year. In addition, the low volume of stock has been underpinning prices.
Speaking about Interest Rates, our domestic rates are always influenced by overseas conditions too, and with the US Interest Rates on the rise, some economists have predicted that ours will follow suit towards the end of this year.
In recent months, The Australian Bank regulator APRA has been slowly tightening lending criteria, making it harder to borrow funds for property acquisition. While this sounds detrimental, personally I think it’s not a bad decision, as it protects the market from over-borrowing and risking a collapse, just like the sub prime crisis in the American market experienced a few years ago. They are still recovering to this day, which is something that we, in Australian, want to avoid.
Fortuitously, Sydney’s Inner West has been performing exceptionally over the last few months. Even with Sydney’s reduced Auction Clearance Rates, the Inner West has outperformed practically every key market in Australia. Here at Devine our last 55 auction sales in the last quarter have resulted in 54 sales giving our client’s an incredible 98% clearance rate.
Exciting news for First Home Owners- the State Government has announced a new package to assist with their first home purchase, which includes a grant and a reduction in stamp duty tax, depending on the price of the property. This is designed to help younger Australians (and your kids) enter the market. This should result in the entry point of the market picking up in coming months.
That’s your Real Estate wrap for the second quarter of 2017. Wishing you all of the best for the next few months, and please don’t hesitate to call me or your preferred Devine agent for all of your Real Estate needs.
Contact our Team today on the following.
Strathfield Office: 50 The Boulevarde, Strathfield NSW 2135
Concord Office: 65 Majors Bay Road, Concord NSW 2137
Drummoyne Office: 25 Lyons Rd, Drummoyne NSW 2047
Wishing you all of the best for the next few months, and please don’t hesitate to call me or your preferred Devine agent for all of your Real Estate needs.
We’re looking forward to working with you soon.
Devine Real Estate
T: 02 8789 0217 | M: 0419 202 930