• May 1, 2019

April was the best month our local property market has seen in over 12 months. It was a busy month with plenty of action underscored by value drawing in the buying audience and sellers keen to close the deal.

The prestige market is currently setting the pace with strong demand for genuine family homes as buyers are recognising the improved value on offer and seizing the opportunity to trade up. The key word in the market is ‘value’, which by no means should be interpreted as cheap. This is Sydney after all and, even following a decline in house prices over the past 12 months, fewer buyers in the market and a credit crunch, property is still an expensive transaction with plenty of add-on costs and the underlying stress of actually making it happen. We suggest it’s great ‘value’ when compared to the heat and hype of the 2015 and 2016 markets. It’s clear that current conditions have swung in favour of buyers, inspiring more folk to either enter the market or trade out of their existing home.

As more property, in general, has sold, we can see a direct correlation with improved buyer confidence. Buyers see others trading and a new price benchmark has been established. A key component of the property market (which never appears on any graph or chart) is buyer confidence, which can really vary from suburb to suburb. Even the areas we service have their own micro-property climate and, unless you’re on the ground involved in conversations with buyers, sellers and general property observers, it’s difficult to truly understand how to read the market and make a sound judgement. Much like the share market, we see weekly and monthly fluctuations, which can be influenced by numerous factors. These include the volume of property available; the auction clearance rate; the number of buyers attending open homes; the quality of the property on offer; the speed in which properties are selling; the quality of agents working it that area; and the commercial awareness of sellers.

Without tooting our own horn, we can’t think of a time in the last 25 years of operating in these markets when a quality agent is of such value. Knowing your buyer pool and really getting deep into their requirements is beyond critical in the current climate. There isn’t a piece of technology out there that offers anywhere near the insight a strong, capable and experienced agent can deliver to a client right now. This isn’t just for those selling either. We’re currently helping hundreds of buyers navigate the market to find the right home. This is a relationship market, not a tech market like it was up to 2016.

In April, we auctioned the highest priced property in the 2041 postcode, we set a record price in Forest Lodge, sold the highest priced sale in Rozelle and achieved an auction clearance rate of 86%. We understand this market, the dynamics and what is really important for both buyers and sellers.

With the Federal election on May 18th, two predicted rates cut to an unprecedented 1%, the traditionally quiet winter market looming and potential changes to capital gains and negative gearing on the horizon, we’ll be kept on our toes and ready to provide our clients with the advice and guidance they need.

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