October had made its mark with the first monthly increase in property prices since April, reporting national growth of +0.4%. Despite monthly shifts, Sydney’s annual property value remains up +6.1% since this time last year.
These positive October figures landed ahead of the Reserve Bank’s decision to further reduce interest rates to a historic 0.10% this week, down from the previous low of 0.25%. The rate cut is expected to remain at record levels for at least three more years, and will add further fuel to buyer interest by revising the proportion of income required to meet loan repayments to 33.9%. Alongside the personal income tax cuts announced in October’s Federal Budget, the further reduced rates will extend improved housing affordability. September recorded the fourth consecutive monthly increase of owner occupier lending - and the highest level since October 2009 - with the latest ABS figures released showing lending to first home buyers is up by more than 46% year-on-year.
We may also see investors make a gradual comeback, with three of the 11 properties we sold over October to investors in the Wentworth Point property market. Urgency has been a clear feature of the last month as our properties barely lasted a median of eight days on the market before being purchased. This week we sold 707/15 Baywater Drive after eight days, highlighting how fast sales can move when realistic expectations and strong demand for quality properties meet.
With the holiday season seven weeks away, we can expect a reduction in new listings with little change to buyer competition, likely to result in sales vastly outweighing supply between now and Christmas. The last minute rush is still a suitable time to secure the home you’ve been looking for, before someone else does. We have a number of new opportunities coming to market before Christmas, so stay close to be the first to know what’s arriving.
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