So why is this market under pressure?
The cost of living remains high. Interest rates may not look extraordinary by historical standards, but that misses the point. The amount Sydney households need to borrow to purchase property has increased enormously over the past decade, so the cost of servicing that debt matters far more today.
Sydney house prices are certainly not sitting at historical norms. Add persistent inflation, tighter lending conditions, uncertainty around future interest rates and a sustained period of weak auction results, and you have a buyer population with very little reason to rush.
That doesn’t mean people have stopped buying. Far from it. Deals are happening every day. Upgraders are recognising that a softer market can work beautifully when the gap between what they sell and what they buy contracts. Families are moving because life doesn’t stop for a property cycle. And genuinely scarce, A-grade homes are continuing to attract competition and, in some cases, very strong prices.
That distinction matters.
This is not a broken market. It is a selective market.
Buyers have simply taken control of the negotiation.
And now we arrive at spring. Traditionally, spring brings energy. More homes, more buyers, longer days, better gardens and plenty of optimism.
But September 1 does not magically change the economy. Spring won’t reset borrowing capacity, remove cost-of-living pressure or suddenly make cautious buyers throw their spreadsheets out the window.
What it will almost certainly bring is more stock. And that creates the next major test.
Sellers entering the market this spring need to understand that they aren’t only competing for buyers. They are competing against every other property on the market for attention.
That is another crucial distinction.
Your presentation matters. Your photography matters. Your campaign matters. Your agent’s ability to engage buyers matters. Your price positioning matters enormously.
Because in a buyers’ market, buyers have alternatives. If your property looks expensive compared with the house down the road, they don’t need to argue with you. They can simply buy the house down the road.
The latest inflation data has added another layer of uncertainty, with the possibility of higher rates again part of the conversation. Whether that ultimately happens or not, the fact it is even being discussed is another confidence headwind for a market already searching for some momentum.
So what should sellers do?
Firstly, relax. There are buyers. We’re meeting them every day.
But you can probably retire phrases such as “I need this figure”, “I won’t sell below…” or “let’s just start high and see what happens.”
The market doesn’t know what you need. It doesn’t care what you spent on the renovation or what the neighbour achieved two years ago.
It simply responds to value today.
And right now, this is a market that punishes unguided optimism and rewards reality.
That doesn’t mean underselling your home. Quite the opposite. Good strategy is about creating maximum competition among the buyers who exist, then using that competition to push the result as far as the market will allow.
There is still opportunity everywhere in this market. Buyers have more choice and negotiating power. Upgraders can potentially make enormous gains through the changeover. Sellers who price and position intelligently can still create competition. And quality property remains quality property regardless of the cycle.
But expectations matter.
As we close the book on winter and head into spring, don’t expect the season to rescue the market.
Expect more listings, more competition and buyers who remain highly selective. Accept that reality and the property market is actually functioning remarkably well. Fight it, and you may spend spring chasing buyers down the hill.
Welcome to September. We’re ready and excited to get involved.
