MONTHLY MARKET WRAP – JANUARY 2020

A tragic summer period for our country makes it extremely challenging to turn our attention to more general matters such as the performance of the property market, but here we are. There is certainly a lot of anticipation about how property will perform in 2020 following the fastest price growth Sydney had ever recorded in the latter stages of 2019. We can confirm that the momentum of the peaking market conditions has carried through into 2020 with January buyer enquiry levels up by 30% and buyer attendances up by 60%. Already we’ve traded almost $16m worth of property since the start of the year.

Stock levels were a key conversation through 2019 with many buyers noting that they had to look at multiple areas given tight opportunities in their locale of preference. We did start to see stock levels increase in late October and November and this increase was absorbed easily with the auction clearance rate sitting firmly in the mid 80% region. Another key condition of the 2019 market was buyers’ willingness to make immediate offers and close out a sale prior to auction. While it’s early to confirm whether that level of urgency is still apparent, we can already gauge that intent to purchase is incredibly high through January. 

Buyer agents, mortgage brokers, solicitors and real estate agents across large areas of Sydney are all hearing and seeing the same degree of buyer enthusiasm for purchasing a property in the first half of 2020. With this level of communication and sentiment pushing through the market, we suggest that the first quarter of 2020 could be one of the strongest – if not the strongest – property markets Sydney has ever seen. The level of price growth we can expect is under question as always however we wouldn’t be surprised to see another 5% added to property values by the close of March.

If you’re a buyer it’s likely competition will be evident for almost all listings, although we may start to see some sellers’ expectations climb too high in such a climate, which can make selecting a property difficult as price disparity between comparable properties widens. We cannot stress enough how important it is to form strong relationships with agents who understand the market and can provide you with clear advice on a range of properties. Too many agents are caught up in self interest and are focused on getting a deal done at any cost.

For sellers the conditions are all in your favour and following a clear strategy will deliver a great sales experience. As always though, keep price expectations in line with recent sales and buyer demand. Even in the strongest market conditions you can have a challenging sale if you over-pitch any property.

We’ll be right across every change in the market this year and look forward to being of service.