Market Update

Easter is done and, happily for all of us, the authorities have rounded up the children and frogmarched them back to the various schools and campuses to transform them into a scholarly and cultured generation that will eagerly wait on us hand-and-foot when we are in our declining years. But that’s long-term, and highly wishful, thinking. In the short term, Easter’s passing and back-to-school mean the housing stocks become tighter. Vendors feel winter in the offing and wonder if it mightn’t be politic to wait for spring to sell. But going against current thinking, in opposition to the herd, is often the way to behave in real estate. It might be especially so this year because at Abercromby’s we have noticed that as stock levels have tightened the appetite to buy hasn’t waned at all. Keen purchasers remain in the market, making it a good time to sell.

The election is the type of self-aggrandising performance art that seems to whip the electorate into deluded visions of vast change. “We will construct Utopia if you elect us.” “No, they won’t. But we’ll conjure up Heaven on Earth if you give us a go.” The electoral cycle is just long enough at three years that the punters have forgotten all the same things that were said last time and nothing changed. So what part of the real estate market will change if Labor is elected? Death Duties? Negative gearing? Try nothing. Labor doesn’t want to be wedged by showing difference and has thus become a reflection of the thing they despise. At Abercromby’s, we don’t think the outcome of the election will have a great bearing on the market.

And so the RBA has lifted the money rate by .25%... in what it calls a “normalising of conditions.” And that’s news. Well so is the fact that Kim Kardashian borrowed Marilyn Monroe’s dress to go to the Met Gala Ball. But it isn’t really, is it? What’s news is that the money rate is at a historic low. Money has been and still is cheaper than your grandparents, parents and children will ever know it. That’s the real news on the money rate.

At Abercromby’s in the past weeks, using our discreet sales methodology, we’ve sold some of Melbourne’s most striking homes, each of them realising the extraordinary sales result it merited. It’s been a very gratifying autumn.

And with stock levels lower than they have been, and demand still high, now is still a great time to showcase your property and let us help you fulfill its potential.

The talk in real estate at the moment is about inflation forcing the RBA’s hand to push up the money rate. But most economists are judging the recent inflationary spike as an anomaly and predict it will retreat to less aggressive levels soon. Will there be more rises in the money rate? Probably. But essentially a money rate rise of .25 percent is only a story because the money rate is at such a historically delectable low. The real story is not its rise but its actual rate. Money is still head-shakingly cheap.

The market is continuing to normalise after the pandemic, but overseas buyers haven’t yet fully reengaged. It will receive a further post-pandemic boost when the Omicron lockdowns in China end.

Some economists, using a year-by-year reckoning and short-term alarmism, are making dour predictions. But on a decade-by-decade basis (the long-term, the only term that counts) the evidence of the resilience, rude health, and indefatigable bounceback of the market is undeniable.

So if you’re contemplating selling your property it would be prudent to call Abercromby’s’ expert sales team to discuss the discreet methodology we employ, putting our entire team at your disposal to maximise your sale price.