It’s not something you might expect to hear from anyone in the real estate profession, but it’s been so good to hear the positivity around talk of bubbles this week! Of course, I’m referring to COVID-safe bubbles rather than the property version and while I don’t really want to ignite the discussion it has been interesting to note the lack of focus on a possible property bubble.
Residential property values continue to rise across Sydney which is great news for homeowners and investors. The Morton team of sales agents are securing strong prices for clients in suburbs including Penrith, the CBD, Pyrmont, Wentworth Point, Green Square and Crows Nest.
Now, usually, such sustained growth in value will generate headlines about a ‘property bubble’ with equally sustained growth in debate about when that bubble will burst. It’s a debate I always find incredibly frustrating because it feels like an attempt to create a self-fulfilling prophecy.
In my view, the growth we are seeing in the market right now is founded on much more than just hot air.
It is the result of sustained strong demand in response to economic and social circumstances that will not explode or disappear overnight. It is increasingly clear we will be living with some level of COVID restrictions for months, if not years, into the future and there appears little prospect interest rates will move much anytime soon.
As a result, people are prepared to put more of their money into their homes. Even if the pace of growth slows purchasers are recognising residential property delivers a degree of financial stability perhaps more than ever before. And as we spend more time in our home in a world that feels increasingly unpredictable, that stability is appealing.
It’s why people are still actively looking to purchase residential property and why I’m glad the only bubble we are talking about is COVID-safe and with our mates!