House prices across Australia continued their decline in January according to CoreLogic RP data, with a 1% drop nationally, but the result shows that the pace of the falls are slowing with the top of the market holding up well.
Tim Bartlett, Principal of Bartlett and Co. Property says that sellers may need to adjust their expectations going into the year, with banks applying the brake on the level of borrowing.
“The decline in prices needs to be put into context after an historic upswing in prices since the start of 2020. It’s clear that the market is facing headwinds with inflationary pressures on interest rates which is reducing the borrowing capacity of buyers,” he said.
Bartlett stressed that the Illawarra market was holding up well and that vendors who are looking to sell and buy in the same market could be the real winners.
What do Coco Pops have to do with house prices?
Less than welcome inflation figures in January will put pressure on the Reserve Bank to lift interest rates at its next meeting in February. And with the price of Coco Pops climbing at a record pace, I thought it might be good to ponder the relationship between the cost of your grocery trolley and home prices.
That comes down to the two ‘I’s – inflation and interest rates. For all sorts of reasons, Australians are facing cost of living pressures at the supermarket including supply chain issues, the pandemic, strong consumer demand (we still have plenty of savings!) and the knock-on effects of the war in the Ukraine. Inflation is ticking along at over 7% pa at the moment, well outside the Reserve Bank range of 2-3%.
So how does the Reserve take demand out of the economy and bring it back within target? Interest rates. When rates go up, they increase the costs of borrowing, reducing the size of mortgages which act like gravity on the property market.
And that’s the relationship between Coco Pops and your house prices.
Spotlight on Kembla Grange
In recent years, Kembla Grange has enjoyed an influx of new housing developments. The area, bordering Dapto, Berkeley and Wongawilli, has become a popular choice for families entering the housing market.
For most of us, Kembla Grange is synonymous with a day at the races or 18 holes at The Grange Golf Course and recently, one of NSW’s largest Bunnings found a home in the area.
To top it off, Kembla Grange has excellent transport links to Wollongong and Sydney – with the expressway a short drive away, its own train station, market shopping centres in nearby Dapto and a growing choice of eating alternatives in Unanderra.
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With January behind us that means that we are back to school, back into the office and heading into the last month of summer.
Keep an eye out on our socials for our Beat the Grind campaign – where we will be popping up at a café near you to offer you something special….
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Meet Tim Bartlett
Bartlett and Co. Property are made up of the husband and wife team of Tim and Alana Bartlett and their sales assistant, Tanya Katselos.
Tim, who has over 30 years of experience in the Wollongong real estate industry is comfortable with dealing with people from all walks of life – from first homebuyers to downsizers.
“Every negotiation is different because every person is different,” says Tim, who has dealt with clients from across the spectrum.
“First homebuyers are often nervous. You need to talk them through the process. The idea of buying a house and actually following through can be scary.”
But it’s the oldies that bring out Tim’s authentic mix of storytelling, compassion and professionalism.
“If you are selling the property of a senior, you have got to be compassionate to the fact that they may have lived in that house for half a century. They may not want to move, but they have to. They are attached to that house. You are not in it to sell their property and move on. You need to keep reassuring them,” he says.
“There is a lot of emotion when selling and I understand that,” Tim says, “I have to nurse the sale all the way through. It is very important to get it right.”
Meet the rest of the team at