THE RIPPLE EFFECT!

People ask us often; ‘what do you think the property market will do?’ Next year? Next week? Hmmm. Well traditionally, we should keep pace with inflation. Currently, that’s low. Very low. Property prices are rising faster than inflation right now, and have been doing so in the Bellingen area over the past 6-12 months. In fact, I’d say that prices of residential property have moved around 5-10% over that period…far more than inflation. Why? It’s the cycle we are in. Low interest rates and low unemployment levels. The huge markets of Sydney and Melbourne are extremely strong. Auction clearance rates are incredible. A mate of mine own two agencies on the lower north shore of Sydney. He tells me that a fair amount of ‘offshore’ money is coming into the market. Houses are selling for 100 or 200 thousand over reserve! So what does that mean for us? Will this boom hit the Bellingen shire? I think as long as employment rates and interest rates stay low, we will do well. The property market has a ripple effect….throw a rock into a pond and the ripples push out. The center of the pond for us is Sydney and those ripples are hitting us now.

Keep an eye on employment levels. I think that these are far more important than interest rates in relation to a property cycle. If you don’t have a job, it’s tough to pay the mortgage!

Enjoy these beautiful autumn days. All those crepe myrtles, liquid-amber and plane trees are spectacular. Take a drive to The Promised Land and look at how fortunate we are. Have a coffee in town and talk with someone you haven’t met before….and if you’re thinking of selling, talk with us!

Regards, the team at openhomeonline.