Over recent weeks I’ve written at length about the numbers we’re seeing come through for the new year. They’re important but they don’t always tell the full story. It’s important to take a moment to try to read between the lines.Clearance rates in Sydney are rising, from 58% up to 76% over the last two weeks. There has also been quite a significant increase in new listings in Sydney with the four-week count rising from 3800 to 6700 in a week. And values are still increasing with a further 0.1% increase last week. That’s down from 0.2% the week before…but it takes value increase for the year up to 0.7%.So, we’re seeing more property available. More property selling. And more value being achieved.That’s a very good trend.You could explain the increases as simply being about the timing. The holiday season is over. People are going back to work. Kids are going back to school. It’s time to get on with the job of listing, looking, buying, and selling.That’s true but perhaps there is a bit more to it than the time of the year.In his recent speech to the National Press Club Governor Philip Lowe explained the Reserve Bank would be ‘watching closely how households would use all the savings accumulated over the past two years.’ Governor Lowe also referenced uncertainty around whether the inflationary pressures we have seen as a result of COVID related supply and demand issues may be a temporary response to COVID rather than a persistent trend.His message was ‘that it will take time for these various issues to be resolved’.I think he is not alone in taking that approach which is why we’re seeing a steady increase in market activity. There is potential for rates to rise. Potential for inflation to rise. Potential for wages to rise. It is all there so decisions are being made with those potentials being taken into consideration.But it isn’t stopping activity. People are reading between the lines and recognising things could change but also recognising now is good. So, they are getting on with it. And our team is there to help.
