Plenty to talk about at the moment with major events happening in Australia and abroad.
Most conversations at the BBQ, however, come back to how will these affect the real estate market.
EOFY is nothing new, it happens every year, though somehow most people have an opinion that decisions can’t be made around this time of year. We often hear “I don’t want to sell till after the financial year” or “I can’t buy until I have done my tax”. Comments such as these do have genuine merit and are valid reasons for a person’s selling and buying timeline. Historically we have found that the number of sales around the end of financial year does not dramatically change from the other months in the year. This year, however, we have experienced a high settlement month leading up to EOFY with sales, not yet completed, having also slightly increased. People still need to move for work, or unfortunately, people still fall ill and need to sell, or just want buy regardless of the tax timeline.
Brexit is big news, globally, and has already profoundly affected our share market. We believe it will ultimately effect the UK real estate market. Australia’s political stability and transparent financial system provides a strong appeal for foreign investors as a safe haven, as we are often seen in the past. The Brexit outcome, if any, is expected to have a positive effect on our market, though many are sitting on the fence saying “let’s wait and see”.
Elections are by far the biggest reason people become indecisive and fear making decisions because of the unknown. The sentiment generally stems from big business and companies not being able to fully commit to projects in terms of funding and resourcing. This sometimes creates a ripple effect throughout communities and families causing paralysis by analysis – the amount of information and variations makes decisions too hard.
Locally, and nationally, the market has started to cool in the last few weeks and months – maybe as a combination of events. A cooling of the market, though, does not mean there no buyers and prices have plummeted. Simply the rate in which growth is occurring has slowed and the number of buyers in the market place and sales occurring are slightly lower.
Knowing how long to hold onto a property and when to sell an investment has a lot to do with knowing what market you are in. Each segment of the property cycle has peaks and troughs, but the current economic indicators still position the Tweed Area in a Rising to Peak Market. If you would like to know more about the value of your property or just get some advice on the state of the market feel free to contact your Professional Agent.
Christian Petersen and Ross Smith