In this month’s news, the performance of houses in Sydney ended up being the worst for the year out of all the capital cities according to Corelogic with a 6.2% fall, and 4.6% fall for dwellings overall.
Hobart remained the stellar performer continuing its climb to the stratosphere from very low levels. The rest of the country remained flat with Darwin the only other outlier moving further into negative territory.
Sydney’s fall has seen the typical withdrawal of stock with stamp duty receipts for the NSW Govt – a measure of sales activity – falling 63% in the last six months.
High volume – fixed fee sales agency Purple Bricks have felt this trend more than most, with a large withdrawal of agents from the franchise as volumes fall.
Labor’s negative gearing policy also got a blast from the opposition after a report from research house Riskwise highlighted Australian property prices would fall 8% if such a policy was introduced.
Banks and lenders are also starting to feel the pinch as rising global wholesale rates are putting pressure on profits, which in turn is forcing banks and lenders to increase interest rates ahead of any RBA interests to protect margins.
Download and read the full Market Essentials – July 2018 Report.