Property Market Not Softening
By Louis Christopher on 12 Dec 2013
No Comments yet, your thoughts are very welcome
SQM Research believes the current market lull is seasonal and normal
Photo: Brian Caldwell
Each week, SQM Research updates its vendor asking prices index, which was released earlier this year.
So far, we have been happy with the way the index has been tracking compared to the ABS house price series.
Source: SQM Research
As can be seen above, the Index at the capital city level has recorded a recovery in real estate prices this year and from what can be observed in this current December quarter, it appears the recovery is continuing onward. In the last 90 days, we have recorded house prices up by 3.6 per cent and units up by 1.7 per cent.
When looking at the current hottest market (Sydney), asking prices continued to climb last week.
“There is no flattening out or ‘peak growth’ taking place…”
Upon speaking to some trusted agents on the ground in Sydney, quite a few are reporting that would-be buyers are becoming increasingly disenchanted with the market. Some are walking away in frustration.
Well, this is what happens in rising markets. Those who come to the upswing later on become angry they have missed out on the gains that have already taken place. In frustration they avoid the market in the hope that the market will soon return to their acceptable price. But often, it doesn’t.
It keeps going. And for now I firmly believe that it was is going to happen in Sydney. There is no flattening out or ‘peak growth’ taking place or softening as some of my competitors have voiced in the last week.
There is perhaps a seasonal lull as one normally gets this year for the capital cities.
