Sydney Home Market Update By PK House

Article by Peter Kelaher

The Sydney property market has shown huge resilience to the Global Financial Crisis, and has had somewhat of a quick recovery due to the RBA cash rate being 3% one of the lowest rates in over 50 years, vacancy rental rates at 1.5%, and stock levels 30% less than this time last year.With interest rates at record lows, First Home Owners Grants being offered, and rents rising 12% over the last twelve months, both investors and owner occupiers are jumping back into the property market.The two main drivers for the resurgence in the lower end of the market has been the First Home Owners Grant, incorporated with the lowest interest rates in over 50 Years. Buyers in the lower price brackets are reporting that it’s only costing them another .00 a week to buy their own home, and after being at the mercy of landlords over the past 3 years with huge rental increases, they are more than happy to say Goodbye Landlord.The property market has made a huge U-turn from 2008 with auction clearance rates in 2009 hovering around 65% to 70%. Previously they were around 50% and under.Here’s a quick snap shot of what’s happening with Sydney property at present:- Units and houses up to 0,000 are hot, selling in a week.- Houses up to million on Lower North Shore, Eastern Suburbs, and Mid North Shore, very strong due to absolutely no stock, worst stock levels in ten years. This market has stabilised now and will start to creep up because of supply and demand issues. I have purchased over million worth of property in Mosman, on behalf of my clients, in 7 days and there was competition on all of them.- Houses over million are still fairly soft in all the blue ribbon areas and stock levels are still low but so are buyers, where in the other price brackets mentioned there seems to be a build up of buyers occurring due to low levels of stock for five months now.Another reason stock is tight is because owner occupiers are choosing to sit on their hands in fear of losing their jobs and uncertainty in general, so the best thing to do is nothing.At present we are now entering into what I call a locked market which is a vicious cycle where no one sells because they are too scared they won’t find anything and have to rent. And if they decide to rent they are worried in this upward trending market that they will get caught out if they want to purchase because they are locked into a lease.Please also note rising unemployment doesn’t necessarily dampen a property market. In the property boom of 2001 to 2003 the unemployment rate averaged around 6.74% to as high as 7% and the cash rate was fluctuating from 6.75% to 8.25%. Unemployment today is presently at 5.4% and the cash rate is at 3%.For further information on this press release, or for honest, independent advice on what the property market is really doing in 2009 call Peter Kelaher, Sydney Buyers Agent and Managing Director of PK Property Search & Negotiators Pty Ltd on +61 (0)419 200 018.North Shore & Northern Beaches Office:Cremorne Town CentreSuite 13, Level 1, 287 Military Rd, Cremorne NSW 2090 AustraliaPhone +61 (0)2 9904 3444, Fax +61 (0)2 9904 3555City – Eastern Suburbs – Inner West Office:Australia SquareLevel 5, 95 Pitt St, Sydney NSW 2000 AustraliaPhone: +61 (0)2 8249 8180, Fax +61 (0)2 9904 3555

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