The market, while relatively strong, is showing signs of slowing with slightly fewer inspections, even with a shortage of properties for sale.
The market has been robust now for the last 18 months to two years, and based on historical information the market is close to peaking in terms of price and volume. The opportunity to sell is as good as it gets currently, and there are still good buys out there for purchasers.
There are quite a number of overpriced properties where vendors are “sitting” on a price and not negotiating, resulting in no buyer enquiry at all. Buyers are well versed in good value courtesy of the internet.
This month’s enquiry has been predominantly villas, townhouses and duplexes with lesser enquiry for single homes.
Three bedroom duplexes sold between $280,000 to $414,000. Villas between $315,000 and $345,000 with townhouses between $300,000 and $350,000. Three and four bedroom homes sold in the $400,00 to $500,000 range.
COOLANGATTA TWEED AREA
This month’s enquiry has seen a mixed bag of enquiry from residential homes to residential development sites for subdivision. House prices have ranged from $380,000 to high $500,000’s. “Off the plan” sales for well positioned, three bedroom home units, selling for up to $900,000.
A word on interest rates
The announcement on the first Tuesday of every month seems to have become a national “sport” and the following is an excerpt from Michael Matuzik’s Missive on what may happen on 5 May.
“The betting money now is that the Reserve Bank of Australia (RBA) will leave the cash rate as it is in May. Recent tapering of the unemployment rate, plus tear away auction clearance rates in Sydney, and to some degree Melbourne, are to blame.”
The Matuzik analysis shows that interest rates need to fall, and maybe several times, in order to expand our domestic economy. Pundits often describe Australia as “Sydney or paddocks” but Matuzik thinks of it more like a game of “Chinese roulette”. “If we want to slow Sydney’s house market, the government needs to implement some half decent FIRB laws and enforce them. But don’t let Sydney’s irrational exuberance blindside you; interest rates are too high.” We will see next week if the RBA agrees.