The upward swing in Sydney house prices has continued through April. The median house price for metropolitan Sydney has gone from $850,000 in the first half of 2013 to $989,000 at the same time in 2014 up to a whopping $1.133 million today. The average price in Lane Cove is currently $1,548,750, according to RP Data.
Going forward, commentators are predicting another official interest rate cut either on or before the May meeting of the Reserve Bank. AMP economist Shane Oliver says borrowers can expect the cash rate to go as low as 1.5% this year in an unprecedented series of cuts. Oliver says a high unemployment rate, softening Chinese economy and high Aussie dollar will be behind the cuts, resulting in mortgage loan rates below 4%. Aussie Home Loans chairman John Symond says he also expects the cash rate to be at 1.75% by the middle of the year, although he doesn’t believe the cuts will have much more of an impact on property prices.
On May 17th CoreLogic provided information exploring property value performance against a declining economy, as businesses were closed and people lost their jobs. The findings were: Negative economic shocks do not necessarily lead to severe declines in property prices; Property does not see the same declines as shares during a … Read more
Job losses have caused an exodus of tenants across Sydney, the drop off of international students and the surge of short term accomodation now being advertised as long term leasing, are all conditions that have led to a major surge in vacancy rates. SQM Research has revealed the total … Read more