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The New Normal

Monday, 14th Dec 2015 12:11 PM

The New Normal

As the year draws to a close it is inevitable that we will reflect on what 2015 has meant to us and what 2016 may bring. For me in the context of real estate 2015 will probably go down as the year of disbelief. In the first half of the year people couldn’t believe how the real estate market was rising, auction clearance rates were over 90% and the market was white hot. Now the market has cooled and people are in disbelief again….really?

 

We have moved into a post boom market or a ‘normal’ market, I am not calling a crash but the market has certainly changed and in the better areas started to consolidate. In some suburbs across Sydney prices have started to decrease (off their mid-year peaks). Investors looking for huge short term gains will be disappointed but it’s worth remembering that property should be considered as a defensive asset class ie long term.

 

So if you bought the house of your dreams this year you may have bought at the peak…of this cycle. If it’s a home that you love and you can afford it then all you need to do is focus on enjoying Christmas with your loved ones under your own roof, being in the right home is far more important than worrying about what you paid for it. When I meet people that have raised a family in their home and been there for decades I often ask ‘what did you pay for it?,’ this is normally answered by something ‘unbelievable.’ The next question I ask is ‘did it feel like a lot at the time,’ people nearly always say yes.

Personally, I want to wish everyone a Merry Christmas and I hope that the new year brings all that you wish for. I am blessed to have a special team of people to work with, every day I feel honoured that they choose to spend their time with me – thank you team.

Until Next Year….who knows what might happen?!

David Murphy owns an independent real estate agency in Sydney’s lower north shore – feel free to call ON 02 9968 2088 or email with questionsdavid@davidmurphy.com.au


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