AS CLEAR AS DAY !!

AS CLEAR AS DAY !!

Many may not be aware that the next week will reveal just how strong the property markets are as the first run of properties is presented to the market place. This will determine just how hot our property markets are and by all reports and agent indications, it will be extremely hot! So much so that in the coming weeks the Mosman market should record high prices if the auction results posted this week are anything to go by. How long this will last is anybody’s guess however concerns over interest rates and the US economy appear to have little to no effect with market sentiments. The graphs below from www.domain.com.au identify many interesting scenarios.

What remains to be seen is just how far prices will go above the record prices achieved in the peak of 2003. Certainly a different and much more complex version of housing affordability which continues to focus on the declining markets across Sydney. The suburbs that surround the central business districts have never been as buoyant despite warnings from the Reserve Bank of Australia and financial institutions that interest rates will increase in the near future.

When clearance rates continue to climb and this is exactly what is happening in our property markets at present, prices can only go one way as consumer confidence is what determines these results.

As predicted in last week’s edition, the Sydney auction clearance rate last weekend was 66.5 per cent slightly down on the previous week at 68.7 per cent. When we look at these rates it is very clear what the property markets are doing and in which direction they are heading. Cheers ^__^

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