Sydney’s Sizzling Real Estate Market
The Sydney real estate market is showing no signs of cooling with auction clearance rates recently breaking a new record of 88.2% following an unprecedented number of weekend auctions.
Historically low interest rates is one of the key drivers of the bullish Sydney market, but it seems any rise in rates is not imminent.
While the Reserve Bank of Australia’s Governor Glenn Stevens is warning of a bubble in Sydney’s house prices, he said a “balance had to be found” between the housing market and the rest of the economy.
In a recent Sydney Morning Herald article, Mr Stevens pointed to the huge fall in investment in the resources and energy sector saying this was “exerting a major dampening effect on demand”. He added that the Reserve Bank board could not allow Sydney’s property boom to dominate its consideration of the “real economy”.
Due to broader economic conditions, Mr Stevens said the Reserve Bank has “clearly signalled a willingness” to lower interest rates further and the question of whether interest rates should be reduced “has to be on the table”.
Housing Affordability Study:
A recent study confirms what we already know only too well… Australian property prices are high compared to the rest of the world.
The 2015 Demographia Housing Affordability Survey found the median multiple of house prices to household income is 6.4 times in Australia, compared to 3.6 in the United State and 4.7 in the United Kingdom.
No surprise that Sydney is the worst at 9.8, with Melbourne not far behind at 8.7, noted AMP’s Shane Oliver in a recent News Corporation report.
Strong Recent Sales
Ray White Elizabeth Bay is pleased to report a strong month of sales in April. Properties sold this month include:
9D/15-19 Onslow Ave, Elizabeth Bay Sold Private Treaty $1,425,000 2 bed, 1 bath, 1 car
204/40 Macleay St, Potts Point Sold before Auction $400,000 Studio, 1 bed, 0 car
102/95 Elizabeth Bay Rd, Elizabeth Bay Sold at Auction $1,970,000 2 bed, 2 bath, 1 car
10/859 New South Head Rd, Rose Bay Sold Private Treaty $775,000 2 bed 1 bath 0 car
C103/2A Elizabeth Bay Rd, Elizabeth Bay Sold before Auction $1,000,000 1 bed, 1 bath, 1 car
103 Stannix Park Lane, Wilberforce Sold post Auction $2,000,000 4 bed, 4 bath, 8 car,
67/1 McDonald St, Potts Point Sold Private Treaty $468,000 1 bed, 1 bath, 1 car