What will happen to the Sydney Real Estate for 2016?
There has been so much discussion and speculation in regard to where and why and the future of real estate for the Sydney Real Estate market in the media, that I too thought I should offer “my 10 cents worth”.
The future can be best attempted to understand from what I believe to be the basic indicators that drive the power of real estate.
As a real estate agent for over 39 years it is important to understand “trends in real estate” and this is simply connected to the 3 issues:
- Buyer confidence
- World market reactions
- Bank and mortgage funding availability
These 3 markers are fundamental to understanding the movement of real estate property and real estate investment.
Let’s consider at the “World Market”:
The global market and economy is softening
Frances Katzen reports from New York USA in her most recent newsletter that her experience form 2015 is leading her to comment that the market will be in caution with buyer discrimination for 2016. Good real estate will sell as long as an attitude to good pricing by owners is adopted. Frances has had (and is) enjoying a tremendous success in real estate, which is due to a number of things, but the bottom line is her understanding and integrity.
The London real estate market appears to be following the same level of caution especially in the “top end”.
The Sydney Real Estate Market is still the most expensive in Australia and even though there have been reports and statistics of a slower market, comments from those agents astute enough to appreciate what is a happening are noting that we are experiencing a “level” and sensible response to real estate purchase.
Buyer’s confidence:
Just because the response to “auctions “ has dropped do not think this is a negative. I look at this at as a time of steady, calculated and care in the purchase process.
This is nothing new, I welcome this attitude with buyers, it gives me time to develop a good relationship with our clients and help them discover what they want and need.
Bank Funding:
This is the “biggie” and will definitely influence what happens this year. Due to the slowing of the global economy I suspect that funding will be slow and this is the uncertain factor to buyer response.
Needless to the above I feel that the market will move at a steady pace: buyers will have more time to consider and this will lead to more Private treaty Transactions.
I am looking forward to a good year of steady sales.
DISCLAIMER
The information in this article is of a general nature. While care has been taken preparing this information Kathryn Hall Real Estate does not warrant, represent or guarantee the accuracy, adequacy, completeness or fitness for any other purpose that the article may be used. Kathryn Hall Real Estate accepts no liability for any loss or damage (whether caused by negligence or not) resulting from use of information.
