May Market Update.

The real estate market surged 1.2% nationally in the month of May, fuelled by low supply, higher levels of demand and, according to Tim Lawless, head of research at CoreLogic, the return of FOMO to the market (Fear of Missing Out). With listings down -15.2% from the same period last year and nearly -25% down on the five-year average, now is a great time to get in and list.

Lawless says, ““With such a short supply of available housing stock, buyers are becoming more competitive and there’s an element of FOMO creeping into the market. Amid increased competition, auction clearance rates have trended higher, holding at 70% or above over the past three weeks. For private treaty sales, homes are selling faster and with less vendor discounting.”

 

 

 

 

 

 

 

 

  The property market puzzle

Here at Bartlett and Co. real estate, we are always keeping our eye on the latest factors impacting the market. With interest rates well on their way to ‘normal’ territory, most economists think that the end of the tightening cycle may be near. That said, inflation continues to be stubbornly high and well above the Reserve Bank’s target band of 2-3% so we are not brave enough to think that it may be over just yet. The second biggest factor in holding up prices is the low supply issue. As well as low levels of stock supporting house prices, there is also an anticipated 400,000 net migration before the end of 2023 with a further 315,000 new arrivals expected by the end of 2024.

None of this is doing anything for housing affordability. Low stock levels keep housing prices elevated, rent inflation puts pressure on saving for a deposit (and adds to the CPI) and rising interest rates put pressure on mortgage holders. The property market will be a puzzle that policy makers will have to continue to grapple with so that everyone can have a roof over their heads.

 

 

 

 

 

Just how big is the Australian property market

A bit of a history lesson. Over one hundred years ago, the Australian economy relied for its prosperity on wheat and wool. We rode into Federation on the sheep’s back. Before that it was the gold rush. These days, it seems that holes (mining) and houses (the real estate sector) that account for the lion’s share of our national and personal balance sheets.

So just how big it the Australia property market? Australian banks have lent out $1.5 trillion dollars against $9 trillion worth of Australia’s 10.9 million dwellings (across all categories). To compare, we have $8.6 trillion worth of superannuation funds under management in Australia. Of those, according to the 2021 census, 31% were owned outright; 35% with a mortgage and 30% rented.

 

 

 

 

 

 

 Make your home razzle dazzle with fresh artwork

Artwork is such a fun way to bring personality and character to your home. ⁠

Whether it’s a beautiful piece of work from your favourite artist, an image of your dream holiday destination, or even just a freestyle painting of colours you like, it all works.

It’s such an easy way to elevate your space from ordinary to extraordinary.

Follow us over at Instagram to learn more tips and tricks to make your house feel like a home.

 

 

 

 

 

 

 

  Bob Onofri retires

Finally, Tim Bartlett and the team at Bartlett and Co. Property would like to wish local legend Bob Onofri a very happy retirement after six decades in the real estate industry. The 90-year-old has been a fixture on lower Crown St. with a reputation for old school service coupled with … well, old school technology. Famous for shunning the Internet, the mobile phone and even a simple Canva design for new listings, a stroll past Bob’s humble shopfront shows a whiteboard with handwritten rent and sales listings, a simple desk and a press dial phone.

We wish you all the best for your retirement Bob!