Property news this week - first Summer edition
Welcome to the first Summer news edition! It is traditionally the least busy time in the year. We’ll have to see how this season plays out in 2018. This weekend’s clearance rate currently sits at 41% for Sydney.
First up, it seems as though Sydney’s property price drops have affected its ranking as the top economic growth city. Sydney is now the fifth major city in the country. No surprise that it is all tied into the real estate industry. From the article:
"What has happened there has been a decline in house prices, which means that auctioneers, real estate agents' pay packets are slightly less than the year before," he said.
"Banks and financial institutions are writing less loans in Sydney than they were in the previous financial year."
Another ominous headline has also been released today, from Business Insider:
Thankfully, the article ends with a sensible summary:
“…in the absence of an unexpected sharp slowdown in the economy, leading to the potential for weaker employment growth, higher unemployment and potential softening in migration levels, or a spike in mortgage rates, (Tim Lawless of Core Logic) Lawless says the current economic backdrop should act to support home prices in the period ahead.”
Outside of Sydney, Melbourne and minor drops in Perth, this month there were increases in growth in all other capital cities. In addition, regional areas are still performing well.
Back to population growth. The AFR have published an informative piece on how it all fits in with property prices. Here is an excellent quote:
“For me, the overarching aim should be to create successful cities. Places to live and work that meet the financial, social and environmental aims of the residents – and those in the hinterlands.”
Finally, an interesting piece on ‘accidental property investors’ - basically those who became landlords because they found that they did not need to sell their previous property when moving. It would be interesting to see how this demographic react to the proposed changes to negative gearing, especially as they are mostly families preparing for children’s future or subsidising income.
Have a great week everyone!