2015: Is Sydney cooling off? We think not
Property analyst Louis Christopher (head of SQM Research), whom I follow quite closely, makes a lot of common sense in his articles and comments when it comes to property market overviews, in my opinion. His latest criticism is aimed at rival commentators who are predicting doom and gloom for the year ahead in residential Sydney real estate:
“Mr Christopher, who is the managing director of SQM Research, said Sydney is “still looking strong” and could enjoy “another bull market” in 2015 if the Reserve Bank cuts interest rates.
He said that while growth rates of 15 per cent are unsustainable, he had seen nothing to suggest SQM should change its forecast of 8-12 per cent growth for the 2014/2015 financial year.
“Over recent summers – and including this one – we have been getting the usual commentary from the usual suspects stating the market is about to slow down or is slowing down,” Mr Christopher said.
“It is increasingly feeling like the boys who cried wolf. Sooner or later they will be right, but right now, a slowdown currently happening in Sydney? Hardly.”
Here at House Search, though it is early in the year yet for listings, we certainly haven’t noticed any signs of slowing down and we are in the market on a daily basis. Attendances at opens are strong, buyer demand is continuing and consistent, selling agents are reporting healthy demand and properties are selling within days of being listed…. with a number of these already above initial expectations. With interest rates set to drop (and even if they stay steady), and a stable-looking economy we tend to agree with Louis Christopher. Growth may not be as rapid or as strong as the last 24 months (most would agree that in some suburbs it’s unsustainable and ceilings have been well and truly reached for now) but there’s no hard evidence to suggest yet that a slowdown is imminent.