This month’s market update

The Australian property market continued its thumping return in November, with house prices back at record highs, even though the Sydney market retreated a little. CoreLogic data in late November showed that the broad market had recovered the 7.5% losses from the dip in April 2022.

“The V-shaped recovery may seem counterintuitive, given high interest rates, deeply pessimistic levels of consumer sentiment and high cost of living pressures, however the recovery can be explained by an imbalance between supply and demand,” CoreLogic’s executive research director, Tim Lawless, said.

Real estate analysts are still being kept up at night about increasing affordability issues, increased migration, and tightening lending standards.

 

 

 

 

  2023: the year that defied expectations

As we come to the final newsletter of the year, I’m sure everyone agrees that this is the year that defied expectations.

At the beginning of 2023, prices were drifting down, we were in the middle of an interest rate tightening phase (13 so far!), stubborn inflation was baked into the economy and tighter lending standards meant potential buyers paying lower prices. But low stock and a government announcement managed to put a floor under the prices.

Fast forward to today, and the V-shaped recovered has defied all the prevailing headwinds. Bartlett and Co. Property Principal Tim Bartlett, says that the year has certainly had its share of ups and downs.

“In over thirty years in the real estate market, this has certainly been one of the most wait and see markets on all fronts. Low stock throughout winter gave way to a bumper spring season as vendors sweated RBA announcements and buyers remained cautious. Servicing a mortgage became the conversation stopper at the BBQ rather than house prices.”

Bartlett remains confident about real estate going forward. “My message is always the same. Buy and sell in the same market to protect yourself either on the upside or the downside.”

 

 

 

 

  Finally, some good news on inflation 

Some cautious good news on the interest rate front, with weaker than expected inflation figures released at the end of November, further reducing the chance of another interest rate rise.

The annual inflation rate fell to 4.9% in November, down from 5.6% in October. Those figures are still far above the RBA’s target band of 2-3%. The CPI figures means that while mortgage holders will breathe a sigh of relief, retailers will be praying for a Christmas splurge during the silly season. And there lies the tension. One day you are a shopper, the next day the mortgage is due.

Such is the delicate balancing act faced by the RBA and Government. What the CPI figures giveth with one hand, may be swiftly taken away with the other if inflation spikes over Christmas.Swings and roundabouts.

 

 

 

 

Giving Trees 

As cost-of-living pressures start to bite, what better way to give back if you have a little spare cash this Christmas than through the City of Wollongong Giving Tree appeal?

In partnership with Anglicare and St. Vincent de Paul, the Giving Tree invites unwrapped present donations for children up to 16 years of age.

It goes until Monday the 11 December to locations in Wollongong Central, Corrimal Village, Dapto Mall, Warrawong Plaza and any City of Wollongong library. This weekend, bikers from the across the Illawarra will get in on the act, with the Bikers Toy Run.

 

 

 

 

 

 

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Finally, as we enter the silly season, we would like to wish all of our clients, partners and regular readers a happy and prosperous Christmas holiday period.

Remember to follow us on socials over the period for opening and closing times.

Enjoy the time with family and friends.