Sydney Housing Market Booms On Back of Positive Indicators

September 25th, 2013

The Sydney housing market is surging on the back of a series of positive economic indicators. Auction clearance rates reached their highest levels in ten years and buyers are now paying well above reserve rates.

The surge has been driven by a continual fall in interest rates, which reached their lowest level in 60 years in August. Borrowing costs are one of the main considerations of home buyers, so the fall in rates has unsurprisingly driven interest in buying.

The NSW economy has also boosted consumer sentiment. Growth has been strong recently, with a minor rise in unemployment over the last few months not hurting overall confidence.

The US and Europe are also showing signs of recovery that have helped improve business confidence.

Rising prices are also being driven by an undersupply of homes brought about by a slowdown in construction. Rental rates spiked dramatically, creating spare capacity for new housing once other economic factors became conducive to a renewal in the market.

Source: http://smh.domain.com.au/real-estate-news/perfect-storm-of-vital-economic-indicators-behind-new-buoyancy-20130916-2tv4z.html