RBA’s warning on Property Market “Bubble”
The Reserve Bank’s recent warning of the risk of a significant fall in house prices has prompted much comment from both experts and the community in general .
The RBA’s latest Financial Stability Review voices concern over the boom in property prices – particularly in Sydney – following a long run of historically low interest rates.
It adds that In NSW, new lending to property investors had jumped by 150% in the past three years and that investors betting on capital gains could “amplify the housing price cycle” increasing the risk of future price falls in some areas. But others such as Domain Group’s senior economist Andrew Wilson does not think significant house price falls are likely.
“There’s no prospect in the foreseeable future for a sharp fall in prices without a sharp rise in interest rates, which is the main catalyst for a housing correction,” he told the Sydney Morning Herald, adding an undersupply of property was also keeping housing demand strong.
Auction success with 100% Clearance Rate:
Our office is proud to announce a strong start to 2015 with all properties in our first four auctions selling under the hammer. The results are as follows:
114/6-14 Oxford Street, Sold at auction for $780,000 2 bedroom, 1 bathroom, 1 parking
4/53-55 Elizabeth Bay Rd, Sold at auction for $780,000 2 bedroom, 1 bathroom, 1 parking
5/14 Royston St, Sold at auction for $433,000 1 bedroom, 1 bathroom
T301/2 Elizabeth Bay Rd, Sold Prior for $770,000 1 bedroom, 1 bathroom, 1 parking
204/6A Birtley Place, Sold Prior for $835,000 2 bedroom, 1 bathroom
7/859 New South Head Rd, Sold at auction for $1,110,000 2 bedroom, 1 bathroom, 1 parking
2/15 Little Bourke St, Sold at auction for $835,000 2 bedroom, 2 bathroom, 1 parking
203/40 Macleay St, Sold at auction for $548,000 1 bedroom, 1 bathroom
19/7 Greenknowe Ave, Sold prior for $365,000 Studio, 1 bathroom
6/136 Darlinghurst Rd, Sold at auction for $625,000 2 bedroom, 1 bathroom
C713/2A Elizabeth Bay Rd, Sold at auction for $1,200,000 2 bedroom, 2 bathroom, 1 parking
Sydney Property Market to stay strong
Sydney recorded its highest clearance rate of 87.5% at the biggest auction day ever with 1128 homes listed on March 28. With interest rates remaining low and demand strong, the run this year of over 80% clearance rate for auctions in Sydney looks set to remain for the foreseeable future.