Sharemarket turmoil will send investors to property

Every time there is a sharemarket rout, the property market gathers momentum as nervous investors seek alternate investments.

So the wobbly Sydney property market might benefit from share investors who don't like the dynamic downturn emerging on local share markets coming out of the United States.

Our shares went down around 3 percent in day last week. It has taken about eight months for Sydney prices to do that, according to CoreLogic, with the median Sydney dwelling down around 3 percent to $884,000.

Last July marked the fifth anniversary of the housing market growth phase, which yes has petered out, but is still up slightly on the latest February annualised data.

At the end of the day property investors still have their bricks and mortar to drive past and admire. 

The Reserve Bank of Australia held rates again at its meeting last week, though lenders continue to make their own moves, both up and down.

The central bank's last move saw it go to 1.5 percent at the August 2016 meeting, so rates have been held steady over three years and for 17 meetings.

It is the longest run of steady rates ever. There were 16 meetings (inclusive) between their August 2013 meeting and December 2014 where they held at 2.5 percent. There was another run of 16 meetings between July 2002 and October 2003 where rates were held at 4.75 percent.

Almost all economists predicted a hold at the first meeting of the year and most don't foresee any change throughout much of 2018.