A New Leaf.

This morning as I woke I was daunted by the prospect of writing the first newsletter for 2024, with the market officially opening tomorrow what is there to say?

Well…after quelling the panic of writers block it turns out...plenty.

I’ll start with what we think the market will do…

As expected with school holidays and silly season officially over, stock levels across Sydney shot up this week. The early indicators have been positive, buyer enquiry is strong but I’ll be able to tell you what that really means next week.

What I can say with certainty is that sentiment has shifted. The general expectation is that this year the market will hold firm and possibly start rising towards the later half of the year. Why? The inflation genie is reluctantly getting back into the bottle and whilst interest rates may go up a little it seems they won’t go up a lot (they may even come down).

Many in the financial markets are also predicting a bullish year. Why? It’s an election year in the US and someone much smarter than me recently told me that since the 1950’s the US share market has gone up an average of 10% when American goes to the polls…(did someone say silly season is over?).

If ever you needed proof of just how robust the Sydney property market is you should reflect on the past four years. A global pandemic, record inflation, a credit squeeze and soaring interest rates didn’t make a dent.

However, as we all know the world is an unpredictable place - just ask Toto Wolff.

Until next week,

David Murphy