I had to laugh this week when I saw a headline exclaiming that there had been over $60M in sales this week in Mosman alone (one of those sales was $43M…rendering the claim a little less spectacular).
Of all sectors, real estate has to win the Logie every year for the most nonsensical claims to try and gain consumer attention. Every day I drive home and see a screen in a real estate office that screams ‘STREET RECORD PRICE’ and then underneath it has asterisked *at time of sale. Given we have all lived through the greatest property boom since Federation the latest sale tends to set a new street ‘record’.
Maybe you are wondering why I’m writing this (maybe not) but the relevance relates to the market we are now in. Even describing the market as one entity is quite sloppy. There are many markets within ‘the’ market, some are doing very well however many are sluggish. If you were to take it as a whole the market is pretty level.
Of course in segments where there has been prolonged low supply that market is good but most agents under duress would describe the current conditions as pretty patchy (that means flat). But wait…if the RBA cuts next week surely the market will take off…will it?
I’m not so sure, I am bullish about property and frankly if you are a buyer I’d suggest buying conditions now are the best they have been in for years but that won’t last.
I’m not always right but I’d say one rate cut will be a relief, another will be encouraging and a third will change the game.
Another wet weekend ahead, yep another one.
Until next week,
David Murphy