Buyer sentiment dropping?

Saw this AFR article yesterday on the NAB residential property survey saying buyer sentiment has dropped in the third quarter but still expects prices to rise (raising its Sydney growth forecast to 27.5% this year)

So are you seeing buyer sentiment plateauing?

Housing sentiment drops as prices and sales weaken

 

Buyer sentiment still booming in the regions

 

Areas I'm looking at, definitely can sense a change. prices not going crazy beyond reserve, but still hitting reserve or just a little above.

 

What? Is the party coming to a close? Nah, can’t be. I was going to get my commodore resprayed canary yellow.

 

You still can

 

Could Sydney be simply too expensive? Sentiment might be not dropping but moving elsewhere (north? )

 

Which suburbs are you seeing a change? In the shire for example, places close to the beach like Cronulla and Caringbah are still very hot, further inland not as crazy.

 

I’m seeing tonnes of new listings in the north west hills recently of Sydney.

On the flip side I’m seeing much less listings in QLD and SA and houses being under offer after hours.
my observations

 

Definitely not dropping in the areas I'm looking at in Sydney but holding. Not as exuberant as it was earlier this year though. The next 6 months will be interesting.

 

received emails from a Sunshine Coast real estate agent about some current houses for sale that have reduced their price expectation. Take that for what you will, but I know that's the first email I've received like that in a long time.

 

I think we're reaching equilibrium.

 

My guess is Sydney is approaching the "affordability limit", where the market will stabilise for a while...

Areas I'm looking at (Qld, WA) are still in a rampant, unambiguous boom.

 

Perth areas that I follow seem very hot - very similar to parts of Brisbane market that I bought in July. Most properties are under offer by Monday or Tuesday with multiple offers.

However, I notice a lot more house opening for inspection in Sydney upper north shore where I live. When I walk around / drive, I see a lot more for sales. I don’t follow this market that closely so not sure if it’s still hot or more balance. But clearly more supply in this local market.

 

I suspect the imminent prospect of international travel is and will continue to play a part. At least half of my social circle (ages late 20s to mid 30s, mostly with no interest in property beyond living in one) at the start of COVID cancelled big travel plans and fast-tracked home buying or finding a more family friendly rental. Conversation also changed - it used to be about landing secondments in Europe or the USA, planning 4 week holidays, and generally jetsetting places all the time. If that meant living in Viewbank instead of Ivanhoe at the end of it, then no problem.

Slowly over 2020 though, everyone became obsessed with the idea of setting up a permanent lifestlye.. some moved regional, a few bought locally, most are doing some sort of renovation. those that couldnt buy moved to a family friendly rental.. COVID created a wave of settlers. That's multiple years of future demand bought forward. It was great for me, i could talk property with my normal social friends and they didnt get bored haha.

But i have no doubt that once international travel is back on, there will be more exiting and fulfilling things for the average person than locking down their dream house in the right town with the perfect work from home setup by the time they're 30. Its like we had 2 years of nothing else to distract us, so everyone became obsessed.. the return of travel will no doubt change that.

 

Once international travel is back on, half the world will want to move to Australia!

 

Agreed @JL1. I noticed a lot of younger work colleagues are booking expensive holidays next year ie a month in Europe.

A lot of discretionary spending is going to go back into travel and away from property.

And you can bet all the high double income families will be spending on a nice ski holiday that they missed out on the last 2 years.

 

not if the videos of whats happening here with regards to lockdowns/restrictions is anything to go by?

 

Memories fade fast. Last year, absolutely. This year, it’s the opposite.

I’d still choose Australia any day of the week. But others may rethink that.

 

Yes, seen a few, quite shocking this happened in Australia