Has The Sydney Property Market Peaked?

During lockdown, I mothballed my collared shirts and ordered a bunch of navy blue T-shirts with our logo on the front.

And just for kicks, the Moowsletter slogan was slapped on the back in bold yellow…

JOIN THE HERD!

The shirts looked fantastic until their first rinse in the machine.

After that, the collars looked so tacky I couldn’t even wear them in an empty office.

So I turned my pile of lemons into lemonade and used them for the bay run instead.

And to my enduring surprise, I’ve met some wonderful people ever since.

But I’ve also met a few crazies as well, like this Greek guy who tapped me on the shoulder one evening a few years ago…

“Hey mate, I’m cewious. What’s da herd?”

It was gun auctioneer, Tom Panos.

If you don’t know Tom, he was the auctioneer who sold the first house on ‘The Block’ last weekend.

I like Tom. And like most Greeks, he gets super excited about anything with a roof on it!

Which is what happened a few weeks ago when I bounced an observation off him while doing a lap after work.

It went like this…

About four months ago, there was not one house for sale along Henley Marine Dr, Drummoyne. The waterfront overlooking the bay.

And then all of a sudden, For Sale signs began popping up like teenage acne.

But the most interesting thing is, most of the listings look like new money.

Meaning, they’re either fully renovated or redeveloped, with an SUV Porsche or Beamer in the driveway.

And now they’re up for sale.

So I asked my Greek mate if it’s interest rates or something else…

“Da’re start’n to panic mate.”

According to Tom, the market peaked in September when vendors sensed we wouldn’t get a rate cut this year.

And now they have to cut and run.

And then Tom pulled up his calendar which showed a sling of auctions lined up for November/December.

“Have a look at dis mate!”

A heap of auctions had cancelled.

Meaning, vendors feared they wouldn’t get a bid on auction day so they’ve taken an early offer.

As mentioned in previous emails, the bond market is warning us we may see another wave of inflation.

Therefore, in my opinion, I think we stand a higher chance of a rate hike than a rate cut.

In any case, if you need finance, I’d happily recommend two mortgage brokers I’ve been using for years. Both are lovely ladies.

Sarah Helm – 0478 801 552 – sarah@helmfinance.com.au

Sofie Chapman – 0402 229 462 – sofie@buyerschoice.com.au

And if you do apply for a loan, assume 2-3 more rate hikes.

Stress testing your loan now could save your shirt later on without getting rinsed.

Have a good weekend!

Adam

Note – Tom’s opinion about the property market is his only. If you have an interest in a particular area please seek a local opinion because markets vary.

Back paddock – sometimes those people who look like have everything, usually don’t own it. They’re all show, no dough.