Sydney Auction results were the lowest in recent history at the weekend recording an initial result of 44%, which closed out the forth Saturday in a row of Clearance rates under 50%.
However, these stories of low Auction results and falling markets are predominantly spurred on by fear, with buyers scared to buy if, the fear of high interest rates, a recession and, of course, a house price crash become a reality.
Of course, we have been the beneficiaries of a dramatic rise in house prices over recent years and this had to come to an end at some point. Most sensible speculation is that this is just an ease in growth and price will maintain at this level for 12 to 18 months.
Domain has released a list of suburbs that have not experienced any price reductions and in the Upper North Shore area only Hornsby Heights, Normanhurst and Berowra were included. This is evidence of buyers being pushed in to outer suburbs where their budget is likely to secure them a property. However, recently we have seen some of these buyers returning to our core area with hopes of catching properties falling into their budget.
Prestige property still seems to be selling well with well-priced property finding buyers who are less likely to be impacted by the fear of a slight change in market conditions. Further, these properties typically seem to be more prepared for a buyer with a strong focus on maintenance, preparation, styling and added comforts that buyers are expecting for their budget. However, we have noticed some discounting with a number of agents choosing to conceal pricing from the market until it is forced to be revealed upon settlement.
We remain positive.
Thomas Merriman.
Thomas Merriman 