February Proving a Balanced Market & Strong Participation Levels.

It’s no secret the market is experiencing some change, with all major forecasts indicating we can expect to see a slow down this year. Already, we’ve begun to see some signs that this shift has started to take place.

Despite having options available, buyers are beginning to exercise more caution before acting, and we’ve found that our close working relationships with buyers has been the single most forceful driver in maintaining consistently strong performance and results.
This month, our agency was able to unite 2 purchasers with their new homes in less than seven days, relying on our skilled buyer work and a fortified market presence.

Overall we sold 20 properties, with the standout sale for February being 48 Lancelot Street, Five Dock, a 5 bedroom home on 910.5sqm selling at auction for $4.39M.  We brought 16 new homes to market, and introduced 5 tenants to their new properties as the property management side of our expertise saw a drop in days rental properties are vacant.

Expectations of an interest rate spike later this year have not deterred the appetite for auctions as clearance rates remained high at 76% this week across Sydney, proving they continue to be a promising method of sale for those considering selling.

Even greater results are evident in our auction activity, with a 100% success rate on the auction floor so far this year as we continue to thrive, no matter what forecast lies ahead for our market. 

We’re still working with active buyers with budgets up to $10m, seeking out quality, off market opportunities, so let us help guide the way.

Interest rates

Commonwealth Bank CEO Matt Comyn has said the Australian strong post-COVID economy will continue until at least the end of 2023. 

Multiple cash rate increases are expected to start in August this year, and he has urged the RBA to take a “gradual and modest” approach to raising rates.

Price predictions

House prices will fall 14% over 2023 and 2024 as strong inflation forces the RBA to start lifting interest rates. 

Westpac predicts national house prices will edge a minor 2% growth this year as early gains are offset towards the end of the year. 

Property prices are then forecasted to drop 7% 2023, and a further 5% in 2024, before stabilising.

Lending movements

Financial brokers say the urgency to secure fixed rates is rapidly rising as property buyers are anxious about imminent rate rises. 

This means some are rushing into more expensive fixed loans without considering whether or not they will be financially worse off at the end of the fixed term.

Potential sellers

The Real Home Shift Survey conducted by Real Insurance revealed 34.4% of people thinking about moving in the near future.