syd mel housing crash, page-68

Thought I might post some first hand observations on Sydney market.

A number of properties in the inner ring of Sydney are having trouble attracting buyers at current price guides. A lot of agents we are meeting are pushing for offers pre auction and price guides being cut post auction from what they were originally.

Some are simply removing their property from the market but those that have already purchased or need to sell for one reason or another will need to accept slightly lower prices. That said we are not talking about prices crashing, simply not being as lofty as they have been recently.

There is definitely some weakness in the market and I think this will continue through spring. However as markets tend to do, it will balance itself out and as potential sellers see the market weakening they will re-consider and decide not to list their property for sale. Which will in turn reduce supply. Most people don't have to sell, but over the past few months (years) there has been an incentive to sell into a raging bull market. If this incentive is removed supply will drop at the same time as demand and the stagnation period will begin.

Low interest rates may keep a bit of growth in the market over the next few years but it will be a lot slower than we have seen.