May sees some sanity returning to the Sydney property market, while it is still clearly a buyers market the FOMO syndrome ( fear of missing out) appears to be on the mend with buyers now more selective with their bids.

None the less the market is still strong and indications are that growth, albeit more constrained will be good over the rest of this year.  Many vendors who have been sitting on the fence are expected to enter the  market in coming months in order to cash in on what many believe is a peak.

Following the budget the current low interest rates don’t look like rising any time soon and so this will continue to drive investors however the first home buyer market looks set to remain in the doldrums.

 

We had to expect a slow down over the Easter/Anzac long weekends however while Melbourne has just had its best clearance rate in over a year last weekend saw Sydney fall below 80 percent for the first time in 2014.

This is the fourth consecutive weekend fall in clearance rates and despite indications that it is still a sellers market all eyes will be on the RBA. While most economists believe the rate will be held at 2.50 percent this month the RBA will be watching the Sydney and Melbourne markets closely as they have already indicated that the current level of activity is unsustainable.