The usual hyperbole is being sprouted by lazy agencies who continue to be hellbent on reframing any market as being the ‘ideal time to sell’. The reality is that every economic environment moves through its cycles and currently the residential sales market should be considered a modest trading environment. The share market on the other hand is hitting record highs here in Australia and the U.S., while property globally is rebalancing after the extraordinary price surges following record low interest rates.
This year has been a more challenging real estate environment. Higher rates and higher cost-of-living pressures are a genuine factor and a key reason behind many buyers sitting back on their heels and closely assessing their decision to secure a major asset such as property. It may only be a slight hesitation in making a buying decision but when this is compounded with buyers across the entire market, the result is a weak Sydney auction clearance rate and even evidence of downward pressure on certain properties.
Tempering this overview is the fact that this is the Sydney property market and one of, if not the most, resilient property markets in the world. It’s an incredible city and for many Sydneysiders being near our best features – either the harbour or the beaches – is vital, which underpins ongoing interest and steady buyer demand. This has continued throughout the year and has notched up a level this Spring as buyers start to see better value surface and less competition, judging that this could be the opportune time to purchase before rates are cut in 2025.
