It’s not all doom and gloom, apparently

There has been much discussion about interest rates and the real estate market from some sectors of the industry and the media, but pundits like Michael Yardney are urging people to stop worrying about the rocky road ahead.

In his latest property update advice, Mr Yardney said that with talk of inflation reaching nearly eight per cent by Christmas, increasing interest rates, a halt the jobs boom, and the brakes on economic growth, he doesn’t necessarily agree with it.

“If the Government and Reserve Bank get their settings right, inflation will moderate next year and slowly return to within the RBA’s target range, unemployment will hover around four per cent and real wages will start to grow and we will end up with that desirable soft landing,” he said.

“However, I’m a fan of being prepared and not having a crisis, rather than ending up in a crisis and not being prepared.”

His property update also shows that the number of A-grade properties for sale in Australia is still in short supply.

While there are more homes on the market for sale, there is still a shortage of A-grade properties and these are selling quickly.

Mr Yardney said that despite there being more houses on the market for sale at present, people need to remember that buyers are sellers, and sellers are buyers, so in most cases each time a property is sold another buyer is out in the market looking for a new home.

On vendor metrics at a national level, the update shows that properties are taking slightly longer to sell than they were during the property boom of last year.

“However, we’re still in a seller’s market with the number of days to sell the property very low – a sign of the tight supply situation for good properties, and vendor discounting still at very low levels,” he said.

“In general, houses are selling better than apartments, but the shortage of good properties on the market is seeing A-grade properties selling quickly with minimal discounting.”