Weekly Market Snapshot
Overall, the Sydney auction market continues to perform well. The auction clearance rate for the month has averaged 70%.
The levels of stock remain low. It will be interesting to see what eventuates after the federal budget is handed down on 3rd May and then of course the potential federal election pencilled in for 2nd July.
So what will the Reserve Bank do? Will they or won’t they move the cash rate over the coming months? My assumption is no. Here are the reasons why;
- They will not move the cash rate in May as the next meeting for the RBA is 3rd May. It is the same day the federal budget is handed down.
- I don’t believe they will move the cash rate on 7th June as that would mean moving cash rate during an election campaign, subject to the government calling an election 2nd July. The last time the RBA moved the cash rate was during the 2007 election campaign.
- If we were to see a federal election on 2nd July, it is very doubtful that the RBA would move the cash rate just 3 days after an election on the 5th July when they meet.
Auction Results 23/04/2016
Sydney - CR 71.2%, Listed 426, Reported 297, Sold 232, Withdrawn 29, Total Value $241.8M, Median house $1,297,500, Unit $800,000.
Last Week Revised - 16/04/2016
Sydney - CR 62.9% (down from 67.7%), Listed 360, Reported 280, Sold 205, Withdrawn 46, Total Value $206.3M, Median House $1,269,900, Unit $756,000.
Same Week Last Year - 25/04/2015
Sydney - CR 78%, Listed 52, Reported 36, Sold 32, Withdrawn 5, Total Value $33.3M, Median House $1,000,000.
Northern beaches – 88.5%
Eastern suburbs – 84.9%
Inner west – 75.4%
Lower north shore – 75%
North west – 69.2%
Western suburbs – 66.7%
Canterbury Bankstown – 64.3%
South – 62.7%
Upper north shore – 62.5%
South west – 61.5%