Auctions bounce
Sydney is suffering from a chronic shortage of quality stock on the market, and the auction market is running increasingly hot.
The preliminary auction clearance rate for Sydney was 79.3 per cent this weekend, and getting close to the 'boomtime' 80 per cent level.
It's a remarkable rebound, but as PropTrack reported this week, the rental markets in most of the larger capital cities are getting tighter, and tighter, and tighter...and this leading to a fear of missing out from buyers.
Don't get me wrong, there's still a lot of pain in the post, with today's mortgage rates likely to be excruciating for plenty of existing borrowers, to the extent that interest rates will probably need to fall again at some point over the next 6 to 12 months as consumer spending in the economy crumples (interest rates may need to fall in order to get new home sales moving again from decade lows as well).
For the time being, however, employment levels remain very healthy, vendors have practically gone on strike, and the in the big cities rental markets are heading to tighter levels than we've seen before.
