The week ahead in property with Tim McKibbin
- Written by Tim McKibbin, CEO, Real Estate Institute of NSW
The natural easing in prices will continue to play out this week as several factors take hold.
Consumers are digesting the Budget and wondering what it means for them. As ever, for most, the change will be minimal, but the focus on spending and jobs supports sentiment.
Transactional activity will remain strong but buyer desperation has waned, meaning there’s less chance of record results and reserves being smashed.
Nevertheless, the strength of demand remains consistent and properties that are reasonably priced will sell.
Again, we expect clearance rates to come in at the high 70 or low 80 percentage mark.
Even as we approach winter, buyer demand remains intense, as does demand for homes to rent.
Last week’s REINSW vacancy rate data potentially hints at a coming trend, that being renters deciding it’s time to return to Sydney’s inner ring.
In Sydney’s outer suburbs and the regions, rental properties are expected to remain in short supply, but in Sydney, especially in the near-CBD market, there is scope for absorption.
There’s a chance the slight decline in inner ring vacancy will continue. This is good news for investors for whom good news is long overdue.
Looking ahead to the start of winter, the residential property market remains well poised, with price growth easing to more sustainable levels but a correction unlikely at this stage in the cycle.
The REINSW Roadshow is in Dee Why and Castle Hill this week. For ticketing information visit: roadshow.reinsw.com.au
