by Marshall Cobb - Principal
Only 3 buying weekends before Christmas - both for property and gifts for family and friends!
My favourite columnist Peter Switzer wrote this week about the strength of the Australian economy and how he can't believe that Aussies won't show up to auctions when prices have already fallen 10%, interest rates are low and the economy is rocking along at 3% plus growth rates.
He also covers a heap of economic data, some key ones being...
> Retail trade rose by 0.3% in October after a 0.1% lift in September and annual spending growth was steady at 3.6% in October. That was the best jump in five months.
> The rolling annual trade surplus rose from $13.69 billion to $15.29 billion – the highest level in 11 months.
> The net services surplus on balance of trade hit a 15-year high of $145 million in October. Net tourism-related receipts hit record highs in the month.
> Both Australia's exports to China and Australia’s imports from China were at record highs in the year to October.
> The AiG Performance of Services Index (PSI) rose for the 21st month in a row the longest run since 2008.
> After not changing the official cash rate, during the week the RBA said the economy was “performing well.”
> Company operating profits rose by 1.9% in the September quarter to stand 13.5% up on the year. These are at record highs.
> The weekly ANZ-Roy Morgan consumer confidence rating rose by 0.8% to 119.5 to remain firmly above the long-term average of 113.
> The broadest measure of the trade accounts – the current account – improved in the September quarter (smaller deficit), with the deficit narrowing from $12.1 billion to $10.7 billion.
Funnily enough, I didn't see too much of this good news reported in the mainstream press.
On a positive note, the media noise about the falling real estate market has created some real buying opportunities especially for first home buyers, investors, and apartment upgraders. Many of our developers are accepting "sensible offers" as they work towards finalizing sales this year, and having a well earned Christmas break.
Talk to us about locking in your slice of Sydney!