The Real Estate market is performing well as a continuation of low stock levels and subsequently high buyer numbers spike the market into bubble territory. Further, we are now seeing an increase in desperation as we run out of listing weeks toward the end of the year. Traditionally the second week in November is the last opportunity to list an Auction campaign and many buyers are starting to become aware of this closing timespan.
Most suburbs are performing well with a similar increase in median sale price by percentage.
However, Luxury property (new-built and larger homes) has been performing very well, we have also seen property that can be developed into luxury property (good building blocks) of all price ranges are also performing very well.
There have been good results in other parts of the market with the unit market selling very well, and usually prior to Auction albeit at slightly lower growth levels, and good-sized family homes selling often in the first week or two of their campaign.
Local market:
We have been selling between 50 and 75 properties per month at Ray White Upper North Shore this year, from Roseville to Berowra, and feel that we have some of the best data as a result of this.
Average days on market has been around 14 days (This varies in some suburbs and on certain properties) showing us that most properties are selling at or before Auction. The figures show that 75% of our sold stock went prior to Auction and 25% at Auction.
September and October were record listing and selling months for our business.
We are starting to notice more and more ‘urban migration’, buyers moving away from the city fringe and getting better ‘value for money’ in the Upper North Shore. While some of our colleagues in other Sydney areas are not seeing this, we attribute this current price rise to good schools, access to transport, shopping precincts and villages and the decreasing reliance on optimal travel time to the city for work.
Wider market:
As part of the urban migration, we are increasingly aware of shorter days on market for both sales and rental stock in the Upper North Shore however, this is in contrast to our other offices closer to the city with higher days on market.
We are certainly in a strange time in the market as the stock market has rallied alongside the property market, which is traditionally unusual, mixed with a global recession and waning job market.
The concern is whether prices will continue to rise as the market is reintroduced to buyers who are no longer bound by ‘JobKeeper’ or whether it will crash around the predicted recovery from borrowers who have been on mortgage relief.
Banks:
Pre-approvals are still a big issue for buyers with some banks taking as long as 36 days and some banks offering 24 hour turnaround. Of course, interest rates, serviceability and other factors all play a big part in which direction you should go when choosing a loan so USE A BROKER!
Interest Rates (RBA):
The RBA has just cut interest rates to an all-time record low of 0.10% which will no doubt spur on the current buyers. However, the underlying concern is surrounding the reason for this cut – watch this space.
IF you would like a report on your suburb, please reply and I will send a copy straight over.
If you have any questions or would like a report on another area, please let me know.
Thank you.
Thomas Merriman
Thomas Merriman 