NSW Sydney property prices falling

Hmmm US FED is already lifting rates by selling balance sheet and is 95% chance of officially lifting rates in December?

 

Are those rate rises for your investor loans or for OO loans? AFAIK loans to OO are not getting hit by the rate rises that investor loans got hit by? And US 10yr has been below 2.4% most of the year after spiking to 2.6% levels in late Dec 2016 and March this year, so our banks funding really hasn't had much pressure to rise rates. most of it is just becoz of APRA and hitting investors.

You are mistaken, AFAIK that is still being debated. Yellen was talking about it months ago, but the FED hasnt really done much to its balance sheet in terms of reduction. Here's a direct link to the numbers you can see for yourself. It's been holding around 4.46 trillion for most of 2017.
The Fed - Recent balance sheet trends (click on the 1yr tab for the 1 yr chart)

And now Yellen's been fired by Trump, the new guy who just took over is considered neither too dovish or hawkish and might not do anything whilst finding his bearings.

Economy wise, the latest US figures also show low unemployment but wage growth very weak and actually negative for October. I expect further weakness next few months as China is slowing down after their big political event, which will impact global economy and US companies.

So really the jury is still out whether FED will feel comfortable enough to do another rate rise or just sit tight. I reckon they will just sit tight as their congress is still in a mess currently over tax reforms.

 

@Kangabanga investor.

 

Well ,do I buy a lambo $400k or do I keep reinvesting the $950k + cash that that I will be obtaining in my bank account in the next few days.after a fantastic record land sale in Potts hill 2143 ? . There still is growth.you just need to know how to do it.

Toss up between buying a lambo or living off a $1000 a week rental . $50k a year I could be chasing the sun and not needing to work. Not everyone thinks they need a sports car.

 

Buy a Lambo. You only live once mate.

I'm trying to buy one before I'm 35. All I want is a Huracan LP640 not even an Aventador - that should be doable right? Just flip a house and thats it.

 

Buy a used Lambo
One of my clients is selling his white one for $140k

 

Updated numbers:

Nov (1st half): -0.28%
Oct: -0.51%
Sep: -0.16%
Aug: 0.00%

current trend: 5-7% drop per year

 

Who knows this is just the beginning of the correction... time will tell how much stock comes onto market and oversupply and what suburbs will feel more pain.

 

Sydney is getting absolutely flogged by spring listings. more failed auctions will continue to mean longer days on the market, and accordingly higher listings. Numbers are up massively on last year and its only just the start of peak market conditions. Anyone who is still calling this a seasonal increase is kidding themselves.

Like you say, how high it goes will be very interesting, especially given the record number of investors in the market.

 

Have a friend who has had her property on the market and cant sell, had an offer prior to listing and did not take it... worm has turned... and this is desirable North Shore

 

Can you share the listing... price offered and guide now?

 

Nov on pace for biggest monthly decline of the year.

If we get an annual drop of anywhere near double figures... people will start freaking out.

 

I don't think anyone can post a link of freind's property, will you?

I also have a few friends who can't sell. One friend reduced a guide price a few times over 3m period and finally the guide price is reduced by 20% from the original one (Balmain area).

 

Do you have any concept what the November figure means, how do you arrive at your conclusion?

'Nov on pace for biggest monthly decline of the year'

 

that's obvious: -0.28% for half of month is projected to -0.56% for a whole month. Taking into account numbers for Aug, Sep and Oct, it's likely it's accelerating, so the second half of Nov can have higher drop, so it may be -0.6% for Nov which would the biggest. Dec will be quite (Christmas), so probably Nov number will be the biggest decline. That's just a guess...

 

Yes...what was that...worms in the hot sun turn to maggots...

Seriously....the mantle for best property market will pass to Melbourne briefly before Canberra, Hobart, and Brissie and perhaps even Adelaide take the torch.....Sydney market is turning so quickly it has even surprised me!

 

Interesting. Is your friend trying to offload a unit? One of the auctions (Balmain) I attended had a few units up for auction also and they passed in.

 

House

 

no, that's not exactly balmain, and it's not a unit, it's ~$2M house

 

Thanks for explaining it to him.. the pace of price declines in Sydney are accelerating based on above...

Obviously it is stressing some people out the longer these price declines continue.