The property market is thundering along. Can we keep it up?
So I guess you caught the headlines last week about how the property market is going absolutely gangbusters right now.
Prices were up 2.8% in March – the biggest increase in 33 years!
And that was on the back of 2.1% in February, which was the biggest increase in 17 years!
And that means, unless my maths is mistaken, that that’s the biggest two-monthly increase in 50 years.
No, it doesn’t work like that. But we are setting records. Make no mistake about that.
But what really caught my eye was what was going on in Sydney. Sydney prices were up a colossal 3.7% in the month. That’s massive. It sticks out like doggies on the chart:
When you put it together into quarterly data (3 months at a time), prices are growing at 7.1%.
Again, that’s the fastest clip in 30 odd years.
And Sydney we can keep up the pace its set in the first three months of the year, we’re looking at price growth of over 25% p.a!
The boom has well and truly arrived folks. 20+% is a boom, make no mistake about it.
And can we keep it up? Can Sydney keep posting monster gains?
Well, all the leading indicators seem to suggest it can.
Like Auction clearance rates. They’ve been holding up above 80% for months now. When you line it up on the charts, it says the upturn is barely getting started.
Same story with new lending. Mortgage growth is accelerating, but still running a fair way ahead of price growth.
It all suggests that even though we’re posting record monthly and quarterly gains, and even though we’re already growing at a clip north of 20% p.a, there’s still plenty of headroom left.
The boom has a lot further to run.
The train is leaving the station. Catch it if you can.