Firstly, I hope you are well, not just well in health but well in general. Remember, my job is speaking to people, mostly when they least want to be spoken to, so if you just want to chat, please call me I am always here for it – as I am sure you already know. Sincerely.
Once again, I begin by saying ‘in spite of lockdown’, however it is truer than ever before. In spite of lockdown, market conditions seem to be tracking quite well. Auction clearance rates have largely been unaffected with results across Sydney still up around 80% and prices are still selling at or above [market] expectations – especially price guides – am I right?
There has been a bit of push-back from buyers lately about price guides, I myself have been trying to use as much up-to-date information as possible to accurately guide properties though, and still I am amazed at what we can squeeze out when we push.
All of this needs to be put into context, there is definitely less stock on the market, personally I have a lot of clients who are holding back for a couple of pegs to fall into place first, not least of which is the release of lockdown.
However, we are lucky to be conducting business at all. We are governed by a strict set of new rules which still allow us to get properties appraised, styled, photographed, floor-planned, videoed and of course inspected and auctioned. Our inspections are still one-on-one and pre-booked with strict regulations in place in compliance with all government recommendations.
My opinion is this, we have already been through this, largely this part of the market (Upper North Shore) was unaffected and if anything, the market has peaked since the original lockdown, buyers are buying now with the fear the market could take off again. Whether it takes off again or not is yet to be seen, it is a strong possibility as there will be a lot of pent up demand from low stock levels. However, we are trading a lot of property off-market to these buyers and we have a lot of heavy stock on the books ready to launch at the same time both, after lockdown and for the Spring market.
If all this stock hits at the same time, it may just satiate the demand, we will not likely head into a falling market however buyer numbers will thin out among the reloaded stock levels and we should be trading in a fairly even market, which will be good.
Local market: Auctions during lockdown went ahead in a limited amount of businesses and areas. Luckily, we have a massive team and good access to emerging technology so we were able to conduct ONLINE Auctions during this current restriction phase:
Ray White Upper North Shore has a 100% Online Auction clearance rate selling over 50 properties in July.
Notably:
7 Thomas Ave Roseville:
Guide: $2,700,000 – $2,970,000 (revised) $3,000,000
73 inspections
35 Contracts issued
21 Registered ONLINE bidders
Sold: $3,200,000 ($600,000 above reserve)
12 Alvona Ave St Ives:
Guide: $2,400,000 – $2,640,000
67 inspections
38 Contracts issued
20 registered ONLINE bidders
Sold: $3,200,000
We have also been selling a lot before Auction and off-market.
Notably:
14 Yarrara Road, West Pymble (Townhouse)
Guide: $1,800,000 (revised) $2,000,000
100 inspections
30+ Contracts issued
15+ buyers placing offers
Sold: before online Auction $2,456,000
Wider market: This is hard to comment on at present as we are not seeing the volume of transactions, in the public, as we would usually see. I have friends who run an independent agency in the Inner West of Sydney and their business is running much the same as ours, large transaction numbers, large buyer volume, slowing online stock levels and a lot of off-market trades.
Domain has released information suggesting the amount of listed (online) stock has fallen by roughly 20% and up to 80% in some areas. This is well and truly in line with what we are seeing and what I have noted above. We have strategies to assist with marketing to the Domain database while your property is listed off-market to assist our own database when property is listed off-market. There is no point in commenting or speculating on what could, would or should happy with the current Covid-19 restrictions across Sydney and the subsequent impact on the property market. All I can say is, follow the rules when you are dealing with Real Estate Agents and property inspections to keep us open, we are doing our best and appreciate all of you who are understanding and assisting during this time. We have a lot of trades and third-party businesses we deal with that are struggling and hope to see them re-open soon.
Banks: I discussed the bleak long outlook on banks raising interest rates last email, however most are still providing long-term fixed interest, I have just re-fixed myself, not sure whether that is the best idea, as we will only know in time – but my broker secured under 2% so I am happy with that. I am happy to share this with you, as I know that everybody has a different situation for their finance but I still know a lot of people who are complacent with refinancing, in-spite of knowing they may go up at some point, save the money now!
Interest Rates (RBA): Still at record low for now
IF you would like a report on your suburb, please reply and I will send a copy straight over.
If you have any questions, please let me know.
Look after yourself and the people around you.
Thomas Merriman.
Thomas Merriman 