April has Proven Consistency in the Market's Growth.

The first month in our new Majors Bay road office has been abuzz. The end of April has solidified impressive levels of consistency in the market’s growth, something which has now become the true marker of 2021. 

Broadly, record low mortgage rates, improving economic conditions, and positive consumer sentiment have catapulted national housing values to new record highs. With certainty a key driver behind buyer confidence and activity, the prices we achieved this month continue to blow everyone’s expectations out of the water. Some of our standout sales over the last four weeks include:

• 24 Clermont Avenue, Concord – SOLD prior to auction $3.1M
• 28B Hilly Street, Mortlake – SOLD off market $2.235M
• 6 Edward Street, Concord – SOLD at auction $2.8M
• 67/18 Edgewood Crescent, Cabarita – SOLD by negotiations $1.7M
• 23 Brays Road, Concord - SOLD prior to auction $3.22m

So far this month, we have achieved 13 sales with a total value of $29m. Like many others, we’ve been compelled to push price guides up mid-campaign to better align with buyer competition and feedback, a vastly different market environment to the lingering uncertainty experienced this time last year. 

The quantity of properties available has fluctuated week to week between limited levels and dramatic increases, as some owners decide to fast track their selling plans and take advantage of a market in clear boom. Buyer numbers are also gradually levelling out, however those in the market are prepared and ready to purchase. 

Although the market is hot, positive buyer relationships remain an important factor in sales. Potential buyers are more inclined to disregard a property in the current market as a result of rapid price increases, as many will make the assumption a home may be simply out of their budget, without exploring it further with the selling agent.

Auction performance

Strong auction clearance rates through the March quarter corroborate the increasing demand across the market more broadly, as dwelling values in all capital cities rose 5.6%. 

Nationally, March’s clearance rate reached a record peak of 83.1%, the highest volume since March 2018.

Stock levels

A sense of scarcity in property stock levels remains firm, despite many pushing ahead with selling plans to leverage the market’s current growth. 

The total listings across the country remain 26.0% below the five year average.

Revised forecasts on growth
ANZ bank announced their revised forecast for 2021 this month, and it remains the highest one from the big fours so far this year.

Price growth is forecasted to hit 17% nationally by December 2021, with Sydney at the forefront, expected to reach 19%. 

Rising medians
Property figures in Sydney rose 3.6% over March, marking the sharpest monthly rise in 33 years. 

At the end of March, the national home value index was 5.6% above the last market peak of October 2017.

Interest rates

The RBA remained firm on low interest rates at their April meeting, stating there is unlikely to be any increase until at least 2024. 

Buyer sentiment

The latest ANZ-Property Council Survey shows sentiment in the property market has reached a new high, with confidence in the residential property market has now surpassing the 2013 peak. 

Supporting this is the Commonwealth bank’s Home buying spending intentions report, showing that home buying spending intentions increased in March to a new series-high.