All the talk is about interest rates this week, from the Sunrise morning show to the shop owners in Cronulla, to the Australian Financial Review. Today, Kochie from the Sunrise morning show raced over to the Reserve bank during the show to hand in emails from struggling families who, like the rest of us, are wondering why the Reserve Bank had to hit us again when we are all hurting already.
Last weeks rate rise has seen the papers talking “doom and gloom”, “consumer confidence down to 15 year low”, “looming recession” etc.
But the hard reality of it all is seen closer to home with “Wellbeing”, the popular health food chain closing its doors this week in Cronulla and staff suddenly finding themselves jobless.
As to your questions on the blog regarding how auction results have been affected I would say they have been dramatically affected by the rate rises. There are now people who have very large mortgages and are paying 9% or more. How can auctions and real estate not be affected? Many mortgagees have had 12 consecutive rate rises. Who would have anticipated that? Everyone is now cutting back, hopefully we won’t have to give up our daily cappuccinos because that would be really depressing.
With the week starting with Caringbah residents receiving news that Caringbah South was now an official suburb things were looking very bright. A huge 21 auctions were scheduled for Thursday 21st Feb and Saturday 23rd Feb up from 6 auctions the week before. This was a trend across Sydney with the SMH for Saturday 23rd February reporting about 500 properties across Sydney being scheduled for auction on the weekend – “the biggest February auction day on record”. Unfortunately the success stats were much lower for our area with an approx clearance rate of 30% (Sydney wide – 56.7%) Only 6 out of the 21 properties were sold at auction/sold prior or soon after the auction. Beach & Bay Realty was very pleased then to have our only property up for auction this week sell prior – 4/1-3 Tullimbar Rd, Cronulla Nth for $1.7mill.
There were 6 properties that went to auction on Saturday in our focus area, 2 were cancelled, 1 sold prior, 3 passed in and 2 of these sold soon after the auction. According to the Sun Herald Domain (17.02.08), Sydney wide there were 223 auctions and a clearance rate of 51.9%. This week we are tracking 21 auctions! Just to confirm Beach & Bay is covering the suburbs of Cronulla, Burraneer, Woolooware, Caringbah, Dolans Bay, Lilli Pilli and Port Hacking. For ease of reference we have divided the suburbs of Cronulla, Woolooware and Caringbah into north and south, with the dividing road being Kingsway. We are not saying these properties are in Cronulla South or Cronulla North for example, but to make it easier and quicker to for users to search. More suburbs to follow…