An article this week features a report from Fitch (the international credit rating agency)…they’ve just upgraded their forecast on our market to, wait for it: among the world’s highest!
Last December, its forecast for 2021 was 3-5%. Now it’s 14-16%. This might sound like good news for home owners, but it’s not easy for buyers. Our seemingly unstoppable market is, however, dependent to some extent on how we manage the vaccination program and this never-ending battle against the spread of COVID.
The virus is the only player in the housing market with no skin in the game, and it’s ultimate impact on the market long term, is still so hard to predict.
Fitch also raised forecasts for Canada and the US. Their basis? Higher savings resulting in higher deposits, good income resilience, low mortgage rates, high affordability, and supply constraints.
All of which, we are now familiar with.
And of course we’re now well over halfway through the year, so not much foresight required for 2021…it’s happening!
An interesting aside – Fitch was also one of the 3 credit agencies that gave high credit ratings to the subprime mortgage market, ahead of the 2008 GFC.
One thing about which there is no doubt is that the market is the highest most of us have ever experienced. So, if you’re planning to sell, now is the time to seriously consider it. This time next year things might be very different.
As we remain in lockdown, the villages are naturally much quieter. It’s good to see that, despite a slight sense of injustice at being locked down in line with Greater Sydney, locally we are biting the bullet and getting on with it.
The ban on construction and renovation has also meant almost no incoming and outgoing traffic as tradies stay at home. Hopefully, some have been able to get on with those home repairs needed in their own places! As well as a leisurely surf.
If you thought Sydney prices were high…you’re right! Not just locally, but globally, top end property here has been shooting the lights out.
We’ve still been able to show homes, strictly by appointment and in line with Covid guidelines.
After a great online auction of a cottage in Newport’s Golden Triangle last week, this week we sold a much loved, long held little sweetie on Bilgola Plateau. After just a week on the market it sold pre-auction for a price that delighted the vendors. So, don’t be put off by lockdown. The buyers are definitely still there, and so are we!
We can do appraisals, and are able to line everything up as required. Our recent sales suggest that lockdown is not much of a barrier to getting very strong results – and quickly.
We have some great homes coming soon…so stay tuned.