MONTHLY MARKET WRAP – FEBRUARY 2018

During February we obtained a better understanding of how the property market was performing in 2018.

 

If we move beyond the standard commentary about the year kicking off with renewed enthusiasm and fresh buyers in the market, it is how buyers are engaging with and securing property that is the real barometer.

Starting with auctions, we saw the clearance rate find some consistency around the 70% mark during the month which is considered competitively balanced between buyers and sellers. The average numbers of bidders competing at auctions was recorded at just above two for our company which reinforces balanced trading conditions. Open house attendees fluctuated depending on the calibre and price point of the property but we recorded an average of 19 buyers at the opening weekend inspection.

We appear to be in the midst of an environment where realistic sellers can expect to see buyer interest and buyers can negotiate and secure a reasonably priced property without intense competition.

A key factor we identified during the month was that buyers seem more inclined to expect a price discount. Whether this is at or before auction, the general sense is that selling conditions have softened and buyers are holding firm on their opinion of value. In response to this, sellers entering the market are sharpening their listing price in order to attract and engage buyer competition. This strategy had a positive impact not just with the auction clearance rate showing consistency but with many buyers commenting on the better perceived value now in the market.

Many of the auctions we attended during the month were successful, however a typical scenario was sellers needing to meet the point where bidding ceased rather that seeing competitive bidding sail well past the reserve. This is a critical component of the 2018 property market as competition is the main driver behind increasing property values. Presently, properties are trading but it is rare to see intense competition.

The calibre and volume of property available is pleasing which is ensuring decent buyer enquiry and activity around each listing. However, the depth of the buyer pool isn’t extensive so our advice for sellers is to never discount early interest and feedback. A genuine offer at the beginning of the sales campaign may very well be the strongest level of interest over the selling period.

Buyers are quick to express their thoughts on price and their level of interest. They will buy fast if the seller engages in a negotiation, however they are just as quick to disappear if the feedback from the seller doesn’t align. This is a key difference between a heated and balanced selling environment.

Looking ahead into March we expect to see similar market conditions with decent property volume available for buyers. Quality advice and correct positioning of property will be vital for sellers to secure the best outcome.

 

This month’s signature performers:

 

2 Gladesville Road, Hunters Hill – Sold Undisclosed

 

 

22 Perrett Street, Rozelle – Sold $1.41m

 

 

254 Victoria Road, Drummoyne – Sold $1.73m

 

 

13/5 Cleveland Avenue, Surry Hills – Sold Undisclosed