Thomas Merriman

Firstly, we are still here, in lockdown, some of us are working in the backyard on a beanbag while the kids rule the roost, other are, well I don’t know how else you would be working. 

Most of the conversations I am having at present revolve around the ‘Spring market’ a traditional boom in active listings and buyer activity across all Real Estate markets, but especially Sydney and the Upper North Shore, for obvious reasons think ‘leafy outlook’. 
However, most of my research and data is pointing toward a delay or staggered approach to Spring, while we are sitting on a lot of listings, and still seem to be leading the market in sold listings, we are certainly feeling a delay in on-market stock for a myriad of reasons.  

Sydney prices rose again in August, but at the slowest rate since the beginning of the year. This may be attributed to by the shortage of stock and therefore less data feeding the figures or it could literally be the end of a solid rise in prices in a crazy market. I will put some figures in below in ‘wider market’.

‘Social distancing’ and lockdowns have done their best to level the market, however we have, with the strict guidance of many Real Estate institutions, been able to work around these obstacles and in spite of the strictness of the current situation, we have persevered and the market has grown. 
However, the current cooling in pricing growth has not been attributed to these tighter restrictions, but the unjustifiable growth the market has seen in spite of this situation.  

Further, while first home buyer activity is at a record high, we have seen new FHB dropping out of the market over the past 5 months with investors clambering to get their hands on property growing over the past 3 months as prices grow.   
The good news is, FHB loan approvals were almost 50% higher than this time last year, however investors were well over 100% increase. 

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 92% Online Auction clearance rate selling 60 properties in July with an average days on market figure of just 23  meaning you have a very good chance of selling your home in, or before, 23 days.  

Notably: 

12 Chunoom Road North Wahroonga (2 week Auction campaign): 
Guide: $2,100,000 – $2,300,000 
42 inspections 
20 Contracts issued 
9 Registered ONLINE bidders 
Sold: $2,538,000 ($238,000 above reserve) 

12 Vista Street Pymble: 
Guide: $3,000,000 – $3,300,000 
57 inspections  
20+ Contracts issued 
10+ registered ONLINE bidders 
Sold: $3,600,000 (Street record)

We have also been selling a lot before Auction and off-market. 
Notably: 

27 Duneba Ave, West Pymble (Off-market) 
Guide: $2,100,000 
9 inspections  
9 Contracts issued 
4 buyers placing offers  
Sold: after 1 inspection $2,450,000 


Wider market: From a hypothetical standing start in March 2020 prices across Sydney effectively fell a couple of percent heading into the first lockdown, increasing slightly between June and September 2020 and ultimately taking off ever since.  
According to CoreLogic, we have now seen a total price growth of 15.8% since the start of the year (2021) and a 18.4% since the same time last year.  
In March this year we had a total price growth of 2.8%, yet only 1.8% in August as growth slows, mentioned above. Low stock levels may be a contributor to this.  

Regardless of whether price growth is slowing, house prices are still going up and it is no doubt that this is because of low stock levels, between May and July 1.5 Sydney homes were selling for every 1 home listed. Sydney houses are selling at the fastest rate since 2004, yet the lowest stock listings, down 29% YoY.  

According to Domain, just before the first lockdown in 2020 approximately 40% of listed stock was selling at Auction and less than 10% was being withdrawn, the rest being sold prior or post Auction.During the first lockdown these figures changed to reflect less than 10% selling at Auction and approximately 60%being withdrawn.  
However, in the current lockdown we are seeing a significant change in sentiment with approx. 50% stock selling prior to Auction, roughly 30% selling at Auction and only approximately 20% being withdrawn, the rest selling post Auction. This is obviously reflected in all previous remarks about where we are in the current market and where buyer sentiment is at present.  

Banks: Please speak to a broker there are good deals out there. Obviously low interest rates benefit people with mortgages and disadvantage those living on savings, but don’t be stubborn and rust on to a bank, do some research on both savings and spendings!

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. 

Thank you.