MONTHLY MARKET WRAP – OCTOBER 2019

The property market has settled into a reasonable rhythm now and we expect conditions to remain in the status quo for the remainder of 2019. The Sydney auction clearance rate held firm above 70% throughout October – higher in select markets – while our own clearance rate was 89% for the month. Given the ongoing dearth of listings at almost every price point, we encountered incredibly strong open home attendances and immediate buying interest was identified for accurately priced properties. In a number of cases we brought auctions forward to meet the higher level of demand, sold off-market listings within hours of being shown and continued to see a high degree of urgency on the part of buyers to move forward with offers.

Interest rates were cut during October and financial analysts and market commentators are still predicting another cut either in November or February 2020. This low interest rate environment is fuelling increased demand and interest to purchase. With principal and interest loans available at 2.88%, one can understand why taking advantage of this current financial climate is attractive. We have seen loan approvals for both investor and owner-occupier loans increase over the last quarter and this will continue well into next year. This surge in interest to secure a property attracted many predictions with some analysts suggesting property prices could be back at 2017 peak levels by the end of 2020.

As it stands, we have seen price increases anywhere between 5% and 10% in our area in the past three months and CoreLogic data suggests that Sydney property prices increased by around 1.8% per month for the quarter. Lending conditions remain a great deal harder through all the major banks, so we expect the rapid price increases that we’ve witnessed will taper off. However, right now we’re seeing well-priced and positioned properties often selling well above set reserves and it’s commonplace to have in excess of five registered bidders at auction.

We’re expecting a busy end to the year as a number of vendors have left their decision to sell until the last window, which means we’ll potentially see properties being auctioned deep into December. With buyer demand as strong as it is, it makes sense to take advantage of these current conditions. We’ve seen how rapidly the market has shifted since the election, which no-one predicted, and making hay while the sun shines would be a wise move.

Posted in Uncategorized on 4th November, 2019