Welcome to our first property market update of 2020!
Following on from a steady recovery in the 2nd half of 2019, the property market has gone from strength to strength in 2020.
According to data from CoreLogic, the Sydney auction clearance rates for the week ending 23rd February was 81.5% compared to only 50.2% a year ago.
This is a staggering recovery performance in a relatively short time frame, but why?
1. Low Interest Rates - Official interest rates set by the RBA is currently 0.75% and predicted to go even lower by some economists. Borrowing money at low interest rates have fuelled demand from investors and homeowners.
2. Supply & Demand - Supply of property is still below the long term average yet demand has seen strong growth especially from buyers who missed the boat after the property market had peaked, fallen and then quickly recovered.
3. Banks - The banks are now more willing to lend compared to the previous 2 years meaning getting a loan approved is easier than before. Since the end of the Royal Commission into the banking industry, banks and other financial institutions have been chasing more growth in loans and the industry has become more competitive.
My prediction is that the Sydney property market will continue to be strong for the remainder of 2020 due to pent up demand and at least until interest rates are predicted to rise.....which may be some time yet!
Contact Trevor Chan on 0412 608020 to discuss the options for your property whether selling or leasing and good luck for your property plans for 2020!