On today’s episode, we have Craig Pontey from Ray White Double Bay giving his Market Wrap of the past month. Get updated on what’s been happening in the market.
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Here’s the transcript of the video:
Craig Pontey from Ray White Double Bay. Thanks for joining the Carpool Series with Soho. Mate, yeah, it's good fun. I'm quite looking forward to it, i'm a bit excited actually. There’s heaps happening in the market I guess post elections you are obviously dealing with buyers and sellers daily, what are you guys seeing? How’s the market wrap kind of post elections? Can I tell you there was a bit of euphoria after the election, it was the miracle We actually had to have and got which is great. I think the alternative would have been pretty diabolical for the market generally for a short period of time, but no change has been a good thing. Sentiment is definitely up. There's no doubt, i'm sure all my fellow competitors out there have all seen a bit of a spike in the market since the government staying the way that it is. The interesting part about it is it's brought back a lot of investor confidence. Before the election, the Labour Party was talking about getting rid of negative gearing and changing a whole lot of tax rules. So none of that's now happening and we've certainly seen the investment market in the Eastern Suburbs improve quite dramatically in the last two or three weeks. Let's say I am a buyer, looking at Double / Eastern Suburbs, what are the advantage or opportunities for me the moment? Interest rates that have come down, but what are you seeing for buyers? Look, I think people are out there looking to reinvest again, they're getting nothing on cash in the bank if you have cash at the moment, It's really not valuable in any way shape or form. So we're seeing people coming back and buying two bedroom units, you know in that sort of $850,000 - $1million range and people are also buying things for kids again, which is good so that activity in that investment markets been exceptionally strong. We were chatting off camera just before that listing levels, I guess are quite low in historic terms, let’s say I am a vendor, I am looking at bringing my property to market, elections have finsihed what are the advantages of bringing my property to market now and I guess second half 2019. Look what tends to happen around here in the Eastern Suburbs, June / July everybody runs away overseas on holidays, and disappears off the face of the planet. So there's not going to be a lot of stock coming on in the next six to seven weeks. You'll find come spring that everyone gets back into the action again and things start to improve. I think if we get a lot of stock in Spring, it'll be really interesting to see how the market reacts to that, one of the reasons why the markets been holding up remarkably well other than no change of government is the fact that there's been no stock around, stock levels are off historically 30-35% which is lot. When there's not a lot for people to pick and choose from there's a bit of buyer frenzy out there because they can't see their way forward. So therefore with little to choose from, it tends to maintain that pricing level quite well. So if we get a lot of stock in Spring and it starts to sell, then I think the market will be okay. If we get a lot of stock in Spring and clearance rates drop below 50% then we might be you know up for some challenging times. It's just sort of on that edge of that precipice