For those that still pay attention to what the share market has declared a complete loser:
Veteran real estate agent John McGrath has called the peak of Sydney and Melbourne’s five-year housing bull run, but says prices are not on the “edge of a cliff”.
“I don’t think there is any other market in Australia that I would declare is at the peak of its cycle,” Mr McGrath said.
Sydney’s median house price — particularly in the inner and middle suburbs — had become unaffordable for many people, which was likely to push buyers to areas such as the NSW central coast and Wollongong, from where they could still commute, he said.
However, only a significant lift in interest rates of about 2 per cent would trigger a material correction, the founder of McGrath Estate Agents said. The Reserve Bank held interest rates steady this week at 1.5 per cent, with economists largely expecting flat rates until the final quarter of next year.
…There were some leading indicators of a plateauing market, he said, with sales results less extreme, more houses being listed for sale and lower auction clearance rates. Sydney and Melbourne prices experienced 10-14 per cent growth in the past 12 months, so may fall 3-5 per cent.
Should you listen to this bloke? Ask the share market:
