Thomas Merriman

General market revival

It’s the news we have all been waiting to hear; the Sydney market – and of course the National property market – is in an aggressive stage of revival.
For the first time Since November 2016 prices in Sydney have begun to increase.
While we have seen extremely modest price growth (0.1%/0.2%) over the past few of months, July/August saw roughly 1.5% growth in the Sydney property market which is phenomenal for our price recovery.

Of course we are not hoping for an aggressive spike in prices as this will be perceived to be unsustainable, and of course may well be, but we are looking to see a revival into a stable trading market for the foreseeable years.

Interest Rates

Sitting at a record low of 1.25%, the ASX 30 day Interbank cash futures are trading at a 13% chance of a cut, meaning at the time of writing, I am confident we will not see a cut Tuesday 3^rd September. However, the cut is coming.

The RBA did say they didn’t want to see rate cuts spike the property market, regardless of their intention this was always set to achieve this result. However, regardless of the scrutiny the RBA may receive the softening economy is looking for a rate cut to assist in some revival.

Auction clearance rates

This is the main figure quoted as an indicator that we are in fact in a stage of revival, this time last year we were not achieving 50% clearance rates in most capital cities, especially not in Sydney.
However for the last 6 weeks we have been above 70% and the last 3 weeks above 80%.

There is less stock on the market, however it is selling at or before Auction with the confident (or scared) buyers flocking the market to buy before a further spike in prices.

Remember, property is currently at the cheapest it has been for 3 years – there is only one way from here, this is Sydney after all.

Predictions and findings

Buyer numbers are certainly up, whether this turns into a full blown property bubble, a momentary recovery in prices or just the return of a stable trading market, we are definitely seeing more buyers and more confidence.

This time last year a sales campaign at the then usual 40+ days on market would result in 40-50 buyers whereas we are currently seeing between 100 and 200 buyers through a 3/4 week Auction campaign with a sale often in the first week or at Auction.

Further proof that the market is reviving is the news that reports of ‘underquoting’ has re-entered the marketplace.

As a buyer, be aware that the agent is providing proof of the quoted price range, the agent may have pressure from the seller to achieve a certain result but ultimately the agent is responsible for the price whether high or low.

Buyers never complain about the price in a falling market but often lose the power in a rising market and need to vent this frustration; we are sympathetic to all our clients as our sellers are also buyers in the same market, so make sure you have an ally in this rising market.

Suburb Medians

As we see the market change it may not be until October that we see the effects of the price rise on our median sale prices – settlement periods vary between 42 and 60 days usually.

West Pymble: $1,600,000	Pymble: $2,400,000	Gordon: $2,330,000
Turramurra: $1,910,000	South Turramurra: $1,500,000	North Turramurra: $1,560,000
Wahroonga: $1,800,000	North Wahroonga: $1,630,000	Warrawee: $2,900,000
St Ives: $1,870,000	St Ives Chase: $1,810,000	Killara: $2,360,000
Hornsby: $1,080,000	Hornsby Heights: $1,020,000	Normanhurst: $1,130,000
Berowra: $1,100,000	Thornleigh: $1,060,000	Pennant Hills: $1,290,000

 

We are currently now in peak selling period in all suburbs across the Upper North Shore, we have the most buyers in 3 years and the market is suffering from a desperate lack of stock.

Ray White Upper North Shore sold 35 properties in August with our closest competitor selling just 17 – with this momentum we are meeting more buyers and more sellers – make sure you’re registered in our buyer database.

If you’re considering selling, make sure you discuss this with us.