Savvy Buyers Swoop In.

It’s understandable many are playing it safe, but while some are tapping out of the market, the savvy are fast moving in to swoop on the prospective opportunities presented by softening sentiment and prices.

Our inspection activity across a normally quieter mid-winter July paints a vivid picture of just who is looking to buy and how serious their plans are, with over 1,000 genuine and motivated purchasers joining us at open homes to see what’s on offer across a wide range of properties last month.

Despite Sydney’s auction clearance rates falling below 60% for the seventh consecutive week, our agency clearance rate hit 70%. The agency achieved a total of 14 sales with 7 selling prior or on auction day. The introduction of 26 fresh new listings are available for discerning buyers to see now.

The Sydney market’s well-documented experience of lowering supply levels and stagnation is simply far from what we’re encountering throughout the Inner West at Dib Chidiac. And while our sales strength carries on, the current landscape of our rental market also remains one nobody could have predicted.

We continue to observe the resounding ripple of normality returning as borders opened and jobs resumed, instantly skyrocketing demand for one and two bedroom units, grand family homes with ample room designed for pottering about and working flexibly, and of course, the return of the great, young Aussie tradition of moving out of home - all fuelling a ceaseless demand that vastly outweighs supply, and generating strong competition that is edging rental prices upward.

So what’s ahead of us? It’s hard to say. RBA economists forecast the interest rate rises attempting to combat inflation may bring about a 40% slump in home loans in coming months, as the reality of higher borrowing costs compels more buyers to retreat from the market.

With perspective in place, Sydney’s 2.7% house price decline to $1,552,015m in the June quarter brought the median below the March 2022 peak, but it still remains higher than it was 12 months ago.

We’re yet to endure any of the drastic changes other local markets might be more vulnerable to, and remain undeterred from a naturally cycling market where there always remains sprouting opportunities for buyers and vendors alike. We’re here to help you find your way through it.

The positive and negative of interest rate rises

Recently released 2021 census shows a number of Sydney LGAs disproportionately affected by higher borrowing costs, including Burwood, where 25.9% of borrowers were already paying over 30% of household income on mortgage repayments.

Unsold homes across part of Sydney are forcing the hand of vendors to re-evaluate and reduce their asking prices, generating waves of bargains for buyers.

Price declines in perspective

Sydney house prices have decreased 1.9% in the past four weeks, the fastest rate of decline in more than 40 years, with the median still remaining higher than it was a year ago.

The higher end of Sydney’s property market is leading the downturn in home values with pockets of the Northern Beaches, Eastern Suburbs, Inner city and Inner West recording the largest declines, fuelled by rising rates reducing buyer borrowing power.

Prices fell more than 10% in Kogarah, Sylvania and Eastwood, and more than 5% in suburbs like St Marys, Woolloomooloo and Erskineville.

Clearance rates

Auction clearance rates have dropped below 60% for the seventh straight week, and during the first week of August, Sydney recorded a 7.1% decline in volume.

This represents a 6.7% drop on the same weekend last year, when the city was in the midst of a major COVID lockdown.

Inflation

Australia’s annual inflation rate jumped to 6.1%, its highest level in more than two decades.

According to the Australian Bureau of Statistics, the rise in the consumer price index in the three months ending June 30 was the highest since June 2001 and the introduction of the GST.

Seeking a spring sale? Place it in our hands, and we’ll deliver the results. Let’s get talking about a spring campaign today.

Click here to contact us to discuss further how the wider market is tracking and how we can help you. 

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