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Get a King’s Cross shoebox apartment for $ 469,000!

If you want to see how crazy the current real estate price situation is, consider a micro-apartment that is small enough to take a shower and sells for $ 469,000 at Potts Point in Sydney.

According to Kirsten Craze on News.com.au, the apartment is 17 square meters and the bed is packed in a space where clothes are hanging.

Interestingly, this current market madness exposure could be remembered as the highest benchmark or post-pandemic peak of the real estate boom of the 2020s!

why? good, Australian person Recorded that the number of auctions scheduled for this weekend was set to exceed 4,000 for the first time, giving a bit of asset history during creation. CoreLogic reports that real estate in the capital of 4,354 will be hit, a historically significant number in the history of real estate, but it could also be economically significant.

Charles Turbay, the founder of Century 21 and Better Homes and Gardens real estate, has predicted that a flood of real estate will hit the market after the blockade is over. ((((See my latest interview with Charles Today’s episode Switzer Investing.).

You don’t have to be a real estate guru to know how high demand has caused real estate prices to skyrocket across the country. Prices could rise 27% in Sydney this year, while Melbourne, the world’s blockade champion, will still rise 17%.

Tarvey’s prophecies about the huge supply reaction after the blockade are revealed in this bunch of record auctions this week, showing that supply is catching up with demand. And for those who are dissatisfied with that gruesome science called economics, prices go down when supply outweighs demand!

A respected and fairly accurate predictor, Louis Christopher of SQM Research is up to date. Housing boom and bust report 2022, National home prices are expected to fall in the second half of next year.

Like this weekend’s bumper auction, increased supply is another nail in this price-boosting casket, which has been added to the work of APRA (Australia’s Health Regulatory Agency), and Louis will take further action next month. I think.

In October, the APRA instructed banks to raise the buffer of borrowers’ ability to repay loans at least 3 percentage points above the loan rate from the previous 2.5 percent points. Banks have also raised fixed-rate mortgage rates due to the recent surge in overseas borrowing costs.

These stories of an apartment-like closet (although in one of Australia’s coolest districts, Potts Point / Kings Cross) and 4,354 properties for sale cannot be ignored by APRA. And especially when Reserve Bank boss Dr. Phil Rowe recalls that his “promise” of not raising official interest rates until 2024 turned into a prediction!

The longer Dr. Phil sticks to it, the faster APRA must act to reduce the bank’s tendency to say “yes” to large borrowings from prospective customers.

Another sign that this strong real estate market is a bit less “lively” is the latest measurements of auction clearance rates. “Last week’s clearance rate dropped to 70.3 percent after a peak of 83.2 percent in early October,” said Mark Bell of news.com.au. “Traditionally Australia’s strongest market, Sydney dropped its clearance rate to 68.7% last week, which is the lowest of the year.”

And for those looking for the best course of action for the potentially weakening real estate market, here’s a tip from Louis Christopher. According to Domain.com.au, “Australia’s first and second most populous cities will witness the largest cooling and return of prices, but are expected to dominate home price growth in 2022. Is Brisbane. Up to 14%. “

And this is what Louis said. “Although there is still a slowdown, Brisbane is currently growing at 22% growth … Therefore, Brisbane will be affected by APRA intervention, but not as much as Sydney, and Melbourne’s home will. . “

Sellers still have time on their side, but lack time for them to dominate in that great Australian arm wrestling called property. Patient buyers were able to get some fun surprises in 2022.



Get a King’s Cross shoebox apartment for $ 469,000!

Source link Get a King’s Cross shoebox apartment for $ 469,000!

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