Getting Ahead of the Spring Rush

“In winter, I plot and plan. In spring, I move.” – Henry Rollins (writer)

We’re past the coldest peak of winter, with a blooming spring selling season just four weeks away from us. Reflecting on July and anticipating what’s ahead, we know that inflation jumped to 4% in May, with many considering the prospect of another interest rate rise. 

Let’s unpack that within the broader context of the market. Here’s what you need to know this July 2024:

More people than ever are selling - Rising mortgage discharges are running at a record $40b per quarter, with the ratio of discharges-to-new loans telling us that homeowners are selling and, on average, being replaced by buyers with larger deposits. This means more homes for buyers, and more leverage for those with strong deposits.

When it comes to your dream home, it’s worth searching with us rather than starting from scratch - New figures show that building costs are up almost 40% since the onset of the pandemic, and are a major driver of high inflation. This is attributed to the rising cost of materials, as well as new state government regulations adding to the cost of building a new home. 

The market is well insulated from further rate rises - While economists can’t seem to agree on whether there’ll be another rise or not, what we do know is a further rise may mildly curb house price growth, but not derail the broader market thanks to the strong relationship between housing supply and demand that has been consistent.

We continue to sell at exceptional prices. Our noteworthy sales this month include:

• 22 Bayview Road, Canada Bay – A spacious, freestanding family home, sold off market for $2.075M.
• 10A John Street, Concord – A breathtaking family sanctuary of high-calibre design, sold for $2.828M.
• 8 Cometrowe Street, Drummoyne - Light, style and water views in a modernised Drummoyne classic, sold for $2.8M. 
• 1/2  Tenterfield Street, North Strathfield – A quality duplex with house-like proportions, sold for $2.2M. 

When it comes to rentals, the cold set in with a real freeze. Vacancy rates are high at the moment, with supply figures showing Sydney has spiked to an 18-month high, taking some heat out of the market and slowing the pace of rent rises.

This means tenants have more choice now, and it’s attributable to investor lending rising around 20% over the year. While rental supply remains tight at 1.68% of homes available for lease, this figure remains a 0.51% increase from three months ago, - which may seem minor but marks some easing conditions for renters.

This month, we leased:

• A five bedroom home in Croydon for $1,750 per week.
• A four bedroom home in Breakfast Point for $1,500 per week.
• A one bedroom apartment in Mortlake for $630 per week.

We also welcomed Jessica Campos who has joined Team Picasso as a Sales Associate, and Kyce Darwiche joining forces with Dib as a Sales Associate.

With a growing group of experts ready to make your goals a reality, let us start planning your spring search or sale today.