Expectations

Okay. So, the residential property sales market is showing signs that it’s starting to slow, although an auction clearance rate of 70% is still a long way from terrible. That said, I do recognise the very mention of a possible slowdown makes people nervous, so here’s my take on it.

Over the last couple of years, we’ve become accustomed like never before to ‘expect the unexpected’. We’ve had to. So much of what we have endured has felt like it should have been the script for a bizarre movie rather than real life.

I’ve often written that as individuals, and certainly as a team here at Morton, we have had to embrace the idea that there is no normal is the ‘new’ normal.

But then here’s the thing. The movements we’re starting to see in the market are kinda normal. As Spring approached last year, I wrote about the potential for the traditional burst of market activity might not eventuate. My thinking at that time was with the easing of COVID supports we might see the property market tighten rather than rage on.

I was proved wrong. Covid continued and so did the extraordinary market strength. Values continued to rise as activity burned brighter and stronger for longer than I expected.

Nationally growth did continue to rise in February; up 0.6% for the seventeenth month in a row. However, that rise was down from the growth delivered in January of 1.1% and from the monthly high of 2.8% delivered in March 2021.

In Sydney, the month of February saw the first decline in values – down 0.1%. Nothing drastic but after 17 months of growth, I think it does reflect a gradual reduction in the speed of the market.

Perhaps the property market is reminding us that as much as we have come to live with the concept to ‘expect the unexpected’ some things do stay the same. In this case that residential property demand will ebb and flow.

That’s incredibly important to remember and to factor into any decisions around buying or selling property. So, each day at Morton the team sets out ready to ‘expect the unexpected’ whilst also ensuring our clients have the right information so they can set realistic expectations! Nobody said our role was easy.

So yes, the marketing is cooling a little but don’t panic. Don’t lose sight of the fact growth achieved over the last twelve months is still sitting at 20.3%. That is still a hot return.

It can be nerve-wracking so if you have any questions, concerns or worries give one of our team a call. Rest assured we’ll always tell it like it is. That is one thing you can expect from Morton.

Posted in Ewan's Blog on 17th March, 2022