I believe it’s only a matter of time until property prices inevitably start to drop. Up until recent times, the property market appeared to be gathering healthy momentum due to easing credit conditions and interest rate cuts.
Whilst there had been talks of an additional interest rate cut at some point in the first half of this year, this months interest rate cut from the Reserve Bank was a result of fear of the developing coronavirus outbreak (don’t be surprised if there is a further rate cut to .25% tomorrow as a result of the RBA’s Emergency Meeting) – contrary to what those may perceive as a ‘positive outlook for the property market’.
The fact of the matter is, the coronavirus is negatively impacting the economy as a whole – to say that the property market is immune to such a pandemic is absurd. Even with the stimulus package the Government has released, perhaps even another fiscal stimulus to soon follow, there is only so much our Government can do with a situation of this magnitude.
For instance, look at the hit on other asset prices. Despite the fact interest rates are at record lows, assets such as equities have copped a beating. In plain English, this means that for those that have their wealth tied up in the share market, have seen their wealth significantly diminish – literally overnight. So the chances of those individuals using that capital to buy into the housing market is a non-event.
Unfortunately there are sectors of the economy where people lose their jobs, hence an increase in unemployment, hence remaining low interest rates for quite some time ahead – the coronavirus has well and truly hit our economy, some sectors just haven’t suffered (yet) – our Property Market being one prime example!
That being said, it is certainly not all doom and gloom. Time to look on the bright side. Let’s put the coronavirus to one side for a moment – we saw how fast the market gained strong momentum post-election in May 2019, it was powering along. The 2018/early 2019 price correction was almost nullified until the coronavirus outbreak spawned.
In summary, 2020 will be the year when you will likely need to buckle up and ride the property market roller-coaster. It’s riddled with uncertainty and speculation. Throughout the course of this year and depending on your specific market place, expect to see a mixed bag of bargain buys and strong sales – the pendulum will swing in favour of those who are in a position to hold firm and don’t panic!
However, if is certainty you’re after, I firmly believe that 2021 will be the year for those looking to seek comfort – our economy will find solid ground, it always does!
Hills suburbs hit with nine blackouts since December
Residents in northwest Sydney have been hit with nine blackouts in nine weeks following what energy provider Ausgrid has described as some of the worst storms on record.
Cherrybrook residents have been left in the dark for days after 9 power outages hit the suburb in 9 weeks.
Cherrybrook residents have been hit with nine blackouts in nine weeks following what energy provider Ausgrid has described as some of the worst storms on record.
Powerful storms which decimated parts of The Hills and Hornsby between December 13 to 16 saw Cherrybrook residents left without power for several days and sparked, what would later be recognised as the start of ‘blackout season’ between December and February.
An Ausgrid spokesman said the storm event was “the second worst storm (the) network has ever experienced in terms of damage to the electricity network”.
Ausgrid workers try to restore power after a fallen tree brought down power lines. Picture: AAP IMAGE / Troy Snook
“There was significant localised damage to the Cherrybrook area, which took several days to repair and restore,” the spokesman said.
“In many cases we had to rebuild the local network from the ground up and install new power poles and restring powerlines.”
Storms through December 20 and January 5 left residents in the dark once again — causing widespread damage across the entire network.
“It is not uncommon to see an increase in vegetation related outages in the days following severe storms, as damaged branches and trees with waterlogged roots can fall,” the spokesman said.
Pedestrians walk through the mess as Ausgrid workers mop up and try to restore power after a fallen tree. Picture: AAP IMAGE / Troy Snook
“Since December 1, there have been 9 outages across our high voltage network which supplies Cherrybrook, Dural, West Pennant Hills and Pennant Hills.”
The spokesman said the power outages were caused by trees falling onto powerlines on three occasions, two lightning strikes, a possum and three other undisclosed faults in the network.
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“Ausgrid is currently investigating 3 high voltage powerlines which supply the Cherrybrook area to look at ways we can improve reliability for customers,” he said.
“This investigation is expected to take several months.”
Ausgrid is also undertaking a separate project looking at ways to improve reliability of power in Dural, according to the spokesman.