Many a PHD has been earned by many a bright mind over the years while studying the psychology of markets. And yet they are still a mystery to most and have a habit of biting the hand of whatever pompous economic guru is currently selling the future. This week’s genius investor is all too often next week’s flummoxed feather duster for us to pull on the silk gown of Nostradamus or the silk tie of Warren Buffet and say that we know where all this is going. But, “Up” is the educated guess. And here’s why:
* Easter has passed, the school holidays are over; and this is traditionally the time of year when the real estate market hits its stride.
* Seeing the prospect of healthy capital gains, as well as the improving outlook for rents. Perhaps bad news for first homebuyers – but healthy news for the market itself.
* Though the Reserve Bank might have some concerns about housing affordability, it’s fully aware a rising property market encourages consumer spending - and it wants and needs the positive wealth effect from rising prices. The RBA doesn’t look like stopping the run of free money any time soon.
* The market just continues to climb, growth of up to 6.8% over the past three months and is now over 10% higher than the COVID-19 low of September 2020.
* FOMO. Do you know what FOMO is? Auctions are extremely spirited at present and open houses are bustling with buyers, as low housing supply on the market has increased the Fear Of Missing Out. FOMO. (Market Psychology 101.)
At Abercromby’s we are witnessing demand swing away from higher density housing to more substantial homes, due to the work-from-home trend set off by the pandemic. People now combining their working and home lives need larger spaces to do so and are understandably prepared to commit more capital to this dual-purpose purchase.
Our energetic and experienced sales team has lately sold these exceptional properties.
- 6 Gordon Grove, SOUTH YARRA
- 1A Nareeb Court, TOORAK
- 48-50 Hopetoun Road, TOORAK
- 13 Struan Street, TOORAK
- 15 Myrtle Road, CANTERBURY
- 2 Namur Street, KEW EAST
No better time than now to list your own property and allow Abercromby’s marketing team, using our discreet marketing strategy, to maximise its sale potential.
Record prices continue to be set in Melbourne, rising by 4.8% in the March quarter. The pace of growth slowed marginally in April, and if that were a long-term trend it would be significant news, but it seems more like a trivial deceleration in a large, long-term surge than anything newsworthy. Senior economists at ANZ this week reaffirmed their predictions of fifteen to twenty per cent annual growth for capital city prices. Is anyone still buying shares now?
Recent surveys show that, despite record prices, almost forty per cent of Australians say now is still a good time to buy, because they expect the market to continue to rise... and healthy expectation is the pulsing lifeblood of any market – a self-fulfilling prophecy. So, at Abercromby’s, we judge that in the foreseeable future there will be no shortage of buyers as the sellers come out to take advantage of good times.
Shakespeare once wrote: “There is a tide in the affairs of men
Which, taken at the flood, Leads on to fortune;”
Okay, it’s sexist. It should read, “There is a tide in the affairs of people.” Or, “There is a tide in the affairs of y’all”. But Shakespeare’s point was... now is the time to enter the market. With interest rates hibernating and property prices celebrating, now is the time to inspect Abercromby’s portfolio of beautiful properties, any of which might be yours.