The McGrath Report 2020
A message from John McGrath
People are constantly asking me, ‘Where are we in the cycle?’.
I can see why many people have been looking at the market a bit quizzically over the past few years. If we look from above, here’s what most of East Coast Australia has looked like over the past seven years.
We’ve had five years of growth (25% to 75%), 18 months of correction (-5% to -20%) and a small rebound to the positive (not material yet in price but auction rates have shifted up from 45% to 75%) after APRA finally loosened the strings and official interest rate cuts began having an impact.
You might have had a slightly different experience depending on the micro-market you live in but generally speaking, East Coast home owners have done well out of property in recent times.
Unfortunately, our friends in Perth and Darwin can’t report the same enjoyment but their turn will come very soon, in my opinion.
Let me share a few of my observations and the trends that I believe are having an impact (some positive, some negative) on market performance.
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