The Real Week Ahead
- Written by Tim McKibbin
There are signs the pace of price declines is easing. CoreLogic numbers for September show prices dropped 1.8% for the month compared to 2.3% for August.
Last week's rate rise will maintain downward pressure but we see the settling of prices continuing to play out.
It invites questions as to where we are in the cycle. The answers to such questions are only evident in hindsight but there's a case to be made that we're at or near the bottom.
If that's true, property owners should feel comforted. The value of their main asset is up substantially from pre-pandemic times. Systemic undersupply is on their side.
On the other hand, there's little comfort for aspiring first home buyers. The ability of this cohort to compete for available properties has been compromised by higher rates and for many, spiking rental costs.
Predictions made in winter of a mild pick-up in activity in spring are proving generally sound. Auction volumes bounced back last week after the week prior was impacted by the Grand Final and the long weekend.
There's little to suggest there'll be any major shifts as we approach the end of another year.
If anything, and despite various significant economic factors playing out nationally and globally, the biggest variable in the NSW housing market right now appears to be the weather.
Time will tell what impacts if any the budget later this month will have.
