MONTHLY MARKET WRAP – JULY 2017

  • July 31, 2017
The July market regained a sense of stability albeit at a newer level with the auction clearance rate resting at 70% during the month.

 

Locally, we’ve seen a wider recognition between buyers and sellers that the heat in the market has slowly dissipated over the past few months and market conditions have rebalanced. As a result, we noted that many sellers price expectations have pulled back to mirror the slightly more conservative and price-sensitive conditions. June saw the disparity between buyers and sellers expectations at its widest level, however that gap quickly tightened during July and as a result property started to trade more freely.

July and August are often slower months in terms of the number of properties on the market, however across Sydney the listings in 2017 so far are actually above the norm. Despite this report, we’re seeing very tight market conditions in our region. We’ve also seen the number of buyers attending open home inspections almost halve since March this year, which is the result of fewer properties being available, softer market conditions and winter. As it stands though, sellers still have the upper hand with demand outweighing supply and if a property is attractively priced buyers are reacting positively and declaring interest immediately.

Our general conversations in the market remain positive and there is almost a sense of relief that conditions are more balanced. At present buyers can take a touch more time to best assess a property and there isn’t that immediate pressure to act aggressively. We’ve also seen improved buying value which is starting to attract some previously disillusioned buyers back into the market. Given that most banks have tightened their lending policies, it would appear that the current market environment will remain in play for some time and supply and demand will be a key element. At present this favours sellers however, as we approach Spring this may swing into buyers favour.

We’re also closely monitoring the Australian dollar which surged during July off the back of weaker economic news coming out of the U.S. This places the RBA in a tricky position as they may need to cut interest rates if the dollar continues to rise, however, this will counter-act their recent agenda and focus to ease property prices in Sydney and Melbourne. It would be very interesting to see what influence on the sentiment of the market a rate cut would have leading into a Spring market. We’ll be watching closely.

 

This month’s signature performers:

 

14/95-97 Johnston Street, Annandale | $915k

 

 

21 Thomas Street, Birchgrove | $1.275m

 

 

124/169-175 Phillip Street, Waterloo | Undisclosed

 

 

6 Riverside Mews, Drummoyne | $2.155m

 

 

205w/138 Carillon Avenue, Newtown | $737k

 

 

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