Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

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Saturday, 2 May 2015

Sydney moves to boom

Hectic

I was out and about at property viewings this morning in Sydney.

It is hard to remember ever seeing such a volume of people trampling through properties in one day.

Moreover, the key intangible which economists and property writers miss when browsing through the data has become increasingly evident over the past few weeks - a growing sense of urgency.

And what of interest rates?

Futures markets have been pricing a high percentage chance of an interest rate cut on Tuesday, at more than 70 per cent.


However, this level of property market activity in Sydney must at least give the Reserve pause for thought.

Domain Group reported its preliminary auction clearance rate today as 89.1 per cent, which is the highest figure on record.

What another rate cut would do to the Sydney property market one can only imagine.

It is something of a dilemma, however. 

CoreLogic-RP Data's figures for the month of April 2015 released this week showed that dwelling price growth over the past year has been below the rate of inflation in Adelaide, Perth, Hobart, Canberra, Darwin and across regional Australia, so the notion of a "hot property market" is hardly universal.

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A huge fortnight of economic data lies ahead, starting immediately on Monday morning.

Stay tuned!