Steady as she goes is the old nautical reference to a ship sailing steadily and the saying can be applied to our property market throughout July. We saw very little change during the month with the Sydney auction clearance rate hovering at 50%. Blue-chip real estate continued to be aggressively pursued and a steady supply of property entered the market each week. It truly was a very stable month for property with a few subtle adjustments in our conversations between buyers and sellers, mainly around virus numbers increasing in Victoria and everyone keeping an eye on the potential for a second wave in NSW. To be fair, the general mood we detected is that people want to get on with life and keep moving forward, planning and making the normal adjustments to what life throws their way.

35 Cecily Street, Lilyfield

If you’re relying on media articles to understand what’s happening in property, it may be challenging, with conflicting opinions from bulls and bears in full swing. The reality on the ground is that property conditions are evenly matched between buyers and sellers right now. It’s all about fair value, moving for the right reasons and making a sensible decision. That said, if you have a property offering a premium layout, ideal aspect and great location, in our view these have been reaching record price points, surpassing those achieved in the last market peak in 2017. It may only be for a select group of properties but it highlights the degree of confidence people have in quality real estate, despite a pandemic. Interestingly, CoreLogic data revealed at the end of June that Sydney property prices were only 3.5% below the peak market of 2017 and the average Sydney house value increased $113,000 in the last financial year.

40 Hereford Street, Forest Lodge

During July, we sold 57 properties across our network and averaged 367 new buyers being entered into our database each week. The low interest rate environment is a key driver keeping people engaged in property. We saw the first sub 2% interest rate promoted during the month along with the average interest rate falling to around 2.6%, which is cheap money. While approvals for owner-occupier and investor loans declined in the last quarter, refinancing has increased and banks are offering enticing incentives to win your business. We’re continuing to see many people adjusting their lifestyle post-lockdown as we enter phase two of the new world environment. Reality has certainly set in that the virus will be around for quite some time and creating a comfortable living environment has never been more important.

4/24 Middleton Street, Petersham

There has been a lot of talk across every media channel about the final quarter of 2020 being a tough one for property and that remains to be seen. We may very well see the Sydney market split into several tiers with quality locations holding up far better than emerging markets. Our early indicators are that there could be quite a bit of property movement to close the final quarter of 2020 but things can change fast in today’s world, so we’ll continue to watch closely.

7 Hart Street, Balmain East
Posted in Uncategorized on 31st July, 2020