What’s happening to property prices in the Upper Blue Mountains?
4 June 2020
At the moment – sideways probably.
But where to from here? Where is that crystal ball?
What will happen when JobKeeper ends in September 2020?
I thought we would have a “Mexican Stand-off”.
“I won’t SELL unless you pay me my “boom time” price”.
“I won’t BUY unless you give me a COVID-19 discount %”.
That’s not what’s happening.
I enjoyed my best attended “Open House” THIS YEAR the Saturday before last!
Admittedly “social distancing” but queued down the street!
Three buyers “racing to Exchange” and “SOLD” the next week!
Statistically sale of properties in February in the Upper Mountains were about 41, March 41, April 21, and now May 26 SOLD.
Sales in May, were a mixed grill of some minor price reductions perhaps.
Attributable to the LACK OF SUPPLY.
in overall terms the AMP “doom and gloom” prediction of a 20% fall just hasn’t happened.
Sydney has gone down, in May, 0.4% (!), Melbourne 0.9% (!) – ONLY!
Still an awful lot of $cash wandering around the world and certainly Sydney.
Superannuation cash, petro-dollars, iron ore sales money – trying to find a home.
Perhaps even Govt Home Grants.
The delaying of stamp duty would also assist.
Eventually much of this cash will find its way into Real Estate.
Landlords are experiencing up to half their tenants offering to buy the property!
No prizes for guessing why – cheaper to buy than rent at the moment and for time to come?
The interest rates being offered by the Banks are now less than the usual gross 5% rent return.
The forces of simple “Supply and Demand” are at work here.
It’s simply “I’m not putting it on the market at the moment”.
General “wait and see” and perhaps “I’ll put it on the market in Spring when the flowers are out”
– along with everyone else with that thought! Then no more oversupply!
“Let’s leave Sydney to escape the ‘Covid-19 social distancing’ and continue the ‘work from home’”.
“SO LET’S GO SEE WHAT’S FOR SALE IN THE UPPER BLUE MOUNTAINS!”