Last week I was asked to appear on Ausbiz TV. I get asked to do a lot of media these days and it's probably because I'm a straight shooter when most other "experts" push an agenda.I was asked to talk about the recent turn in the market and how that's reflected around the country. Moreso, how it applies to viewers of the show.For me, this is all pretty obvious stuff, though as my team reminded me, I do this for a living.I'm always shocked at how much extra people pay for a property simply because they don't do the proper research and buy "emotionally".Don't make the mistake! Stay informed and never, ever buy emotionally. Especially if it's an investment property.You'll find the latest CoreLogic data, my take on the current market and what our team is doing to ensure clients are still able to get great deals for investment properties and family homes.Keep in mind, I always prepare a lot more than I'd ever need for an interview. Most of the information doesn't even get mentioned.
Below are my (Chris Gray) notes for an interview I did on Ausbiz TV on the 4th June 2021.
Ausbiz 4 June 2021Ref link: https://www.corelogic.com.au/sites/default/files/2021-06/20210601-CoreLogic-home-value-index.pdf
CoreLogic’s national Home Value Index up 2.2% over May and 7.0% for the quarter. Sydney was 3.0% and 9.3%.
- Strong growth in almost all areas
- That is an average though – some property may still not be selling i.e. high rise off the plan in CBD’s.
Some commentators are already calling the top of the market
- We’ve really only had significant growth since Feb – most upswings are 2 – 5 years
- 7% quarters don’t last forever, but previous upswings have seen 10% - 20% - 30% at times as a bit of a catchup
- This rise is not due to Covid – this upswing actually started in Feb 2020, but Covid brought it to an end a few weeks later
- There was plenty of opportunity for buyers to be contrarian and buy from Jun 2020 onwards when many realized Covbid wasn’t as bad as some banks and economists had originally thought – those savvy investors could have got a 10-15% dip and then a 10-15% bounce back
For the second time in three months, growth conditions in capital city home values outpaced the regional markets. The combined capital city index rose 2.3% in May compared with a 2.0% rise across the combined regional areas.
- The media have loved the tree / sea change stories in the last 12 months but I’m not sure if that’s a permanent move for many people
- Can feel sexy to move to Byron with all the trendies, but the reality is quite different if you’ve lived in the city with uber/uber eats/restaurants/bars/variety
- Do you really want to be spending 24x7 with your husband/wife/kids?
- A lot of people will need to still come into work – property is a very expensive thing to sell and re-buy so I’m not sure how many people will actually do it – will they pay over the odds and then sell in a down market when they all realise it’s not that cool?
Mr Lawless reaffirmed the fundamentals driving strength in the housing market remain in place. “The combination of improving economic conditions and low interest rates is continuing to support consumer confidence which, in turn has created persistently strong demand for housing. At the same time, advertised supply remains well below average. This imbalance between demand and supply is continuing to create urgency amongst buyers, contributing to the upwards pressure on housing prices.
- Lack of supply and constant demand is what creates great blue chip markets just outside our major capital cities, especially in Sydney and Melbourne which are supported by so many industries
- People are still cashed up. Some business doing exceptionally well. They’re not getting 100% mortgages. It’s not all the foreigners coming in. Kids are getting support from their parents to get a deposit. Low interest rates.
Examples of current deals
- If it’s already on the market then you’re too late, as if it’s going to auction, you’re up against emotional buyers who pay what the bank will lend them, not what it’s worth
- The professionals are buying it off market or in the first few days of the campaign
- You don’t get all the fancy pictures, but you get a great deal – what would you rather?
2/91 Brook St, Coogee, NSW 2034
- We bought in April 2021 for $1.375m pre auction
- 2 bed, 1 bath, 1 car
- Sold in Feb 2010 for $675k = rough doubling every 10 years
- 600m to Coogee beach
https://www.realestate.com.au/sold/property-unit-nsw-coogee-10628307925 Halcyon Ave Wahroonga
- We bought in Apr 2021 for $3.8m
- 6 bed, 3 bath, 2 car
- Land Size: 1,119m2, Property Size: 242m2
- Fantastic looking property, great outdoor and pool area
https://www.realestate.com.au/sold/property-house-nsw-wahroonga-135844390For more content, chat and property tips, but sure to find me:Facebook:https://www.facebook.com/ChrisGraySydneyInstagram:https://www.instagram.com/chrisgrayempireBook a free, confidential mini strategy session with our property expert Luis Lequerica:https://calendly.com/yourempire/15minOr simply, get in touch with us today on our contact page to discuss your requirements.
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