McGrath Bexley Newsletter

A WORD FROM JOHN M c GRATH

TRADITIONALLY, RE CYCLE CORRECTIONS OF THIS TYPE HAVE LASTED AROUND 18 MONTHS ON AVERAGE...

Last year was a year of correction for the property market. We saw property values in most markets correct by between 1015% from their peak in late 2021. However, in the context of the preceding three years, where most markets had risen by 25-40%, home owners still saw net gains of around 15-20% compared to the entire cycle.

The main catalyst for the correction was inflation, with rapidly rising interest rates increasing by 3.0% throughout the year with 9 straight rate hikes over 9 consecutive months. This not only reduced affordability for new buyers looking to purchase, but also put pressure on existing borrowers, particularly those with fixed-rate loans maturing this (estimated about 30% of residential loans are currently all or part fixed-rate loans). As a result, many borrowers are faced with a mortgage cliff, where their rates will increase from around 2.0% to around 6.0% upon maturity, putting significant pressure on household spending.

As spending is curbed by increased interest rates on all types of borrowing this will put pressure on the financial markets, which tend to thrive as people spend money on discretionary items and as businesses invest and hire more employees.

However there is light at the end of the tunnel.

– As immigration to Australia has resumed, and it is expected that an additional 150K immigrants will move to Australia each year, benefiting the economy and the housing market.

– Traditionally, RE cycle corrections of this type have lasted around 18 months on average, and since we are approaching the 18-month mark and well above the average price reduction for a cycle, we should be in the final stages of this downward cycle.

While current prices should settle around these levels, premium property will continue to attract overweight demand, and prices for the best of the best may escalate earlier than the main market.

Buyers should take advantage of the next six months to secure their new home or investment property, while the market takes a breather, before interest rates settle and prices start to move again.

– For sellers, they can now enter the market with greater confidence, knowing that new market levels have been established, and a good quality marketing message can help attract potential buyers.

A WORD FROM SARAH & MARC RECENT SALES

In the second week of January we observed the highest number of buyer groups visiting our open homes compared to the past decade of recorded data. The number of active buyers has been steadily increasing each week, which may be due to a new group of optimistic buyers entering the market, or it could be a result of the low supply we are facing.

Despite recent interest rates changes, we continue to encounter qualified buyers who are ready to take action. The rental market continues to be stronger than ever which means we have an influx of investors ready to capitalise on high rental yields. Regardless of the state of the market, buying and selling real estate will always be a necessity for Australians. As March is usually a busy period for real estate agents nationwide, we anticipate an increase in stock levels. If you are contemplating a move, please contact us to initiate a discussion.

REGARDLESS OF THE MARKET AUSTRALIANS WILL ALWAYS NEED TO BUY AND SELL REAL ESTATE.

SARAH FOETSCHL

sarahfoetschl@mcgrath.com.au

0432 848 791

MARC WARREN

marcwarren@mcgrath.com.au

0431 328 139

32 Westminster Street, Bexley SOLD $1,400,000

10 Campbell Street, Bexley SOLD $1,957,500

8/10 Valda Street, Bexley SOLD $840,000

2/6 Oriental Street, Bexley SOLD $577,500

56 Princes Street, Bexley SOLD $1,920,000

2/16 Valda Street, Bexley SOLD $915,000

210/165 Frederick Street, Bexley SOLD $460,000

2/15 Gladstone Street, Bexley SOLD $750,000

4 Abercorn Street, Bexley SOLD $3,705,000

14 Allan Street Bexley SOLD 1,810,000

37 Glenfarne Street, Bexley SOLD $1,950,000

73 Abercorn Street, Bexley SOLD $2,600,000

We love local!

LOCAL CAFES | RESTAURANTS | BUSINESSES

JOSHY’S CAFÉ AND PLAY CENTRE

Shop 1/2A Mimosa St Bexley 02 9587 7377

HOMEWOOD CARE

60 Regent St, Bexley 02 9503 1800

ALL SEASONS FRUIT MARKET 601 Forest Rd, Bexley 02 9502 3363

GISELLE AND ANDREW HAIR STUDIO

448 Forest Rd, Bexley 02 9567 2885

ALICE X NAIL

89 Harrow Rd, Bexley NSW 2207 www.alicexnail.com

DANCE ENCORE PERFORMING

ARTS STUDIO

100 Queen Victoria St, Bexley

02 9587 4451

SYDNEY PARTY SHOP

477 - 479 Forest Rd, Bexley 02 9567 8111

NANDAS CAKE DECORATIONS

448 Bexley Rd, Bexley 02 9567 1289

INIGO’S KITCHEN FILIPINO RESTAURANT, BAKERY & CATERING

441 Forest Rd, Bexley 02 8084 1912

ANGELO ANESTIS AQUACTIC CENTRE (BEXLEY AQUATIC)

98C Preddys Rd, Bexley North 02 9150 5288

ANYTIME FITNESS BEXLEY

430-432 Forest Rd, Bexley 0466 403 580

CHERUB SYDNEY

635 Forest Rd, Bexley 0401 660 300

COLLECTIVE CAFÉ & PIZZA 646 Forest Rd, Bexley 02 9588 2266

PETE’S ARTISAN BREAD AND CAFÉ 433 Forest Rd, Bexley 02 8033 6488

TOP BREW ESPRESSO 459 Forest Rd, Bexley 02 8021 7378

GERMAN BUTCHERY DELI & CAFÉ

1/2-6 Sarsfield Cct, Bexley North 02 9150 6402

BAKED IN HEAVEN

10 Regent St, Bexley 0456 216 108

TURTLETOT CHILDCARE

16 Preddys Rd, Bexley 02 9502 2555

BEXLEY BUILDING & HARDWARE 477 Forest Rd, Bexley 02 9597 4725

BEXLEY NORTH HOTEL 187 Slade Rd, Bexley North 02 9150 4226

BEXLEY RSL & COMMUNITY CLUB 24 Stoney Creek Rd, Bexley 02 9502 1966

DANNY’S HOT BREAD SHOP 1/408 Forest Rd, Bexley 02 9599 3191

THE LIFT DEPT. - STRENGTH AND CONDITIONING GYM 475 Forest Rd, Bexley 0411 528 885

ADMIRE FLORIST & GIFTS

97 New Illawarra Rd, Bexley North 02 9150 6507

SARAH FOETSCHL

sarahfoetschl@mcgrath.com.au

0432 848 791

MARC WARREN marcwarren@mcgrath.com.au

0431 328 139

If you are thinking about a move please get in touch with us to start the conversation.