August was a month of stability for the local property market which saw the auction clearance rate stabilise, interest rates remain on hold and sale prices remain consistent.


Across the market buyers also displayed more confidence and appeared more open with their level of interest. As a result, we recorded an increase in properties selling prior to auction. This was also indicative of the fact that we saw slightly fewer ready-to-act buyers at open home inspections so sellers were keen to explore solid pre-auction offers.


During the month it was revealed that despite the lending authority APRA tightening policy for borrowers, there was actually a significant increase in home loan approvals during June and July to the tune of almost $10b. The majority of this loan book was for owner-occupier loans suggesting there is still a reasonable appetite to purchase property and confidence in the property market. This is also timely as we hit the traditionally busy Spring selling period. We have suggested previously that buyer numbers at open home inspections through Winter had reduced by almost 50%. Consequently we had held some concern as to whether an increasing volume of property during Spring would further dilute the buyer pool and truly test supply and demand mechanics.


As it stands, it looks reasonably positive moving into Spring and we anticipate more property will be available for eager buyers. However, take note that we’re still seeing properties with ambitious price expectations being avoided which reinforces the understanding that selling conditions are more balanced than earlier in the year. Moreover, the auction clearance rate for the month hovered around 70% which traditionally suggests the market favours sellers but one can’t be too carried away as it doesn’t reflect hot market conditions.


We were also very encouraged to see a number of significant prestige sales occur over the past month. We set a number of price records across Balmain and Drummoyne along with prominent sales in Redfern, Woolloomooloo, Rodd Point and Marrickville. When sales of significance occur, it generally sets a positive tone right across the market as buyers place a lot of emphasis on what others are doing in and around the market. If you’re looking to secure a home or sell prior to Christmas make sure you reach out to us today to get the best market information available.


This month’s signature performers:


7 Isabella Street, Balmain | Price undisclosed



173 Addison Road, Marrickville | Price undisclosed


6 Riverside Mews, Drummoyne | $2.155m


22 Morehead Street, Redfern | Price undisclosed


Posted in General, Monthly Market Wrap, Property on 31st August, 2017