As we traverse the final month of Winter it seems almost a surprise that the Spring selling season is just around the corner. It crept up on everybody faster than we all expected.
For what it’s worth however, as far as stock is concerned the Winter selling season has been anything but quiet. In fact, right across Sydney buyers are enjoying the choices that come with a winter selling season that is far busier than it typically is. According to PropTrack economist Angus Moore it’s been the strongest annual increase in the total number of homes for sale in more than a decade. In fact, Proptrack reported that “Sydney recorded its largest ever year on year increase in total stock with listings Sydney wide up 30.7% compared to the lockdown-effected levels in July 2021.”
So what’s led to the rise in stock levels? Well simply put:
- Days on market for properties are increasing
- Auction Clearance rates have been falling
Hence, as result of properties sitting on the market longer than they were just a few short months ago stock levels are rising and buyers are reaping the benefit of choices that were simply not available to them over the last couple of years.
Home owners will remember the selling euphoria during the early days of Covid when the recurring theme was insatiable growth and properties would barely be on the market a week before they were snapped up by buyers. Those conditions persisted right up until the early months of 2022.
Much has changed. Over the course of the last quarter commencing May we’ve had four successive interest rate rises (including the recent August rise) as the RBA attempts to aggressively curb rising inflation levels, catapulting the cash rate from 0.10% to where it stands currently at 1.85% - with more rises to come in the months ahead based on current feedback from RBA Governor Phillip Lowe. Additionally, banks have been re-rating borrowers to reflect the changing market conditions meaning that pre-approvals have not been as generous as they previously were even just a few months back.
With the benefits of more choice naturally comes more leverage and buyers have been taking the time afforded to them by recent evolving market conditions to negotiate more carefully when choosing a home without the pressure of urgency that existed over the last couple of years. This extra choice has seen home prices moderate from their previously high levels, especially over the last three months in particular and buyers are getting a head start on the spring selling season.
It’s been a reflective few months for many home owners. Those owners contemplating making a move are really having to assess the market and weigh up their motivations for selling. For those that genuinely want to make a move there is a growing realisation that they’ll need to realign expectations to a market that is clearly shifting. But on the flip side, there will be many sellers that become buyers who will themselves be in a position to pick up value too.
For those of you who may be interested please feel free to click on the image above for the Housing Market Update from CoreLogic which shows economist Tim Lawless taking a deeper dive into current market trends.
* This information is general in nature and not intended to be financial advice.
* Reach out to myself or my team at Meridien Realty for the best real estate assistance and expert advice on what’s happening in your local market. Whether you’re looking for a top selling agent or professional property managers to rent your property you can rest assured we’ve got you covered with the best advice.