The Silver Linings of Lockdown.

In our 11th week of lockdown restrictions, we’ve seen buyer hunger that simply will not waiver. There continues to be great urgency amongst those looking to purchase, further driven by the low supply environment that remains.  

In August we sold 18 properties, totalling over $42M. Five of these were off market deals, bringing our total off market sales since lockdown commenced to a dozen. We’ve observed a spike in off market sales as owners who were only considering selling were able to be successfully connected directly with buyers work closely with, who were ready to make an immediate purchase.

Our stand out sales this month were: 

• 23 Station Street, Concord sold for $2.71M
• 8a Thompson Street, Drummoyne sold for $3.35M
• 7 Spring Street, Concord sold for $3.75M
• 302/24 Kendall Inlet, Cabarita sold for $1.9M
• 10 Pitt Street, Concord sold for $4.1M

Many looking to buy have been in the market for a number of months, missing out on previous properties, or unable to find what they’ve been looking for, with such limited variety available. 

Those showing signs of holding back include developers and builders - those requiring total certainty to move through with their property plans. With these cohorts aside for now, what remains of the market has been left for owner-occupiers who really are reaping the greatest benefits at present. More about how and why owner occupiers are so well positioned is explored further in our silver lining for homeowners snapshot below.

The most in demand properties right now are those positioned on waterfronts or offering attractive views, family sized bungalows, and beautiful, high end homes. The desire for these properties is so high that even if multiple joined the market at the same time, it would make very little difference to the outcome of their sale as there is guaranteed to be a buyer waiting to move on it.

Appraisals have reduced and this may be a result of potential vendors limiting their interactions, or weary of current restrictions impacting their sales campaign - but don’t let this generate any reluctance if you are thinking of selling. It’s important we start the conversation now. Get familiar and informed with how real estate is still thriving in lockdown, and talk to us about the effective strategies and methods we have for marketing and selling at the pace we still are.

We’re anticipating a dry spring and summer ahead if current conditions continue on the supply front so we’re calling it early - January and February 2022 might see a serious influx of properties on the market. 

Plan ahead now, and take full advantage of current conditions.

Auction clearance rates

With Sydney now in its 11th week of lockdown, auction clearance rates are hovering even higher than last month’s 70% figure - currently sitting at 85%. 

Both this month and last month’s clearance rate figures surpass those this time last year when it sat steadily at 65%, showing the enduring confidence buyers have in the property market, no matter the circumstances. 

High sales and low supply dominating

CoreLogic have ported residential sales during the three months to the end of July were more than 53% higher than during the previous five years. This equates to approximately 170,000 more sales. 

Whilst sales are skyrocketing, supply remains low and new properties joining the market has slipped to 120,000, the lowest ratio of listings to sales for a decade. 

Low-interest rates continue to drive significant demand, alongside home buyer incentives, our economic bounceback, and serious buyer FOMO.

The silver lining for homeowners 

Savvy homeowners are leveraging rising property values and increased equity to top up their mortgages. Over June alone, extra money on the mortgage soared 17% higher than June last year, hitting $10bn nationally. 

Unsurprisingly, loans held by owner-occupiers rose 30% as people are meeting savings goals sooner.

Where the market trajectory is heading

Huge property sales are still occurring throughout Sydney and other major Australian city markets, despite the current and extended lockdown periods. CBA has reported house prices are likely to continue rising, seeing an additional 4% increase through the impending spring season. 

CoreLogic economists expect the residential property market to be worth $9 trillion by the end 2021, with it currently worth $8.8tn today. To gauge the significance of this, just look to comparative Australian  investments and their worth - superannuation at $3.1tn, and the stock market at $2.8tn.