Hi, Kyle Brand here with the November Market Report.
November has proved to be an interesting month with a number of events influencing the market place. On the supply side of the market, stock levels remain tight. Although there has been an increase in the number of Central Coast property owners in preliminary discussions about putting their property on the market for sale. We certainly expect to see higher levels of properties available for sale moving into 2016.
On the other side of the coin, and that is buyer activity, we know how important consumer confidence is to the real estate market and how consumer confidence is reactionary almost instantaneously to events that receive a lot of media attention. A lot of attention in November was focused on the slowing of the Sydney market. The media follow their usual pattern of over dramatizing the reality. Yes, the market has slowed but there still remains a massive amount of sales occurring on a weekly basis and there is no sign of prices having corrected. What has slowed is the volume of buyers in the market and the speed of sales.
We have also had the tragic events of Paris which have consumed our TV and print news. Watching and reading the news cannot have anything other than a negative effect upon our sense of security.
The third major news is that the APRA regulations are now clearly showing less volume of investors buying simply because the new regulations are preventing them from doing so. The intention of the regulations was always to reduce the number of buyers in the market and to give home buyers a stronger position in the market place.
Not surprisingly the volume of buyers about in November was down on previous months although the strength of those buyers that are in the market remains strong. That is they have the capability of buying and they have a very clear intent to buy. So what is going to happen going forward? Well, fundamentals always drive the market and the reality is we continue with record low interest rates, unemployment is improving, population growth continues and the Reserve Bank is starting to talk up our economy. People continue to need to live in houses so the demand exists and for investors where else do you put your money? You get nothing in interest on bank deposits, the stock market remains a very volatile place and there is talk of increasing tax on super.
I believe the market will remain healthy in 2016, with a high proportion of Central Coast buyers coming out of the Sydney market place. The fundamentals will continue to drive the market long after the breaking news stories of a month or two earlier.
On another point, we are now well and truly into the busy Holiday Rental Season and we look forward to welcoming the many holiday makers to our beautiful holiday homes and the region.
Best wishes for now and the festive season.