MONTHLY MARKET WRAP – JULY 2018

  • August 1, 2018
Winter Stock Levels Remain Low

 

Auction clearance rates during July continued to hover either side of 50% whilst stock levels remained low, consistent with the usual mid-winter trends. The low stock levels were probably further heightened as a result of many potential sellers being apprehensive about going to market given the current uncertain conditions.

Whilst we have quoted the overall clearance rates for Greater Sydney, the premium regions such as the Inner West, City and East and North Shore/Beaches have actually performed significantly better- results typically ranging from 70-80% with a high percentage selling prior to auction.

Here at C&H, we enjoyed above-average clearance rates which we attribute to ensuring our vendor clients are equipped with the latest sales data, as comparing sales from 3 – 6 months ago are simply no longer relevant.

That said, we found demand for the blue-chip areas was quite solid as long as the properties were priced appropriately, but regardless of how good a property is on offer, if the price or guide is too ambitious it will be overlooked by buyers.

For those potential sellers undecided about when to go to market, one train of thought is that those accepting of the current market conditions and gearing up for a late Winter/early Spring sale may ultimately do better than those who opt to defer their planned sale in the hope that the market will rebound to the buoyant conditions we had become accustomed to over the past 5 years. Time will tell, but our advice to potential clients considering a sale is go to market sooner rather than later.

 

Rental Market

 

We also felt it appropriate that we comment on the current state of the rental market which has started to receive media attention over the past several days. A recent article in Domain stated that the Sydney rental market has recorded its highest vacancy rate in more than a decade with almost 20,000 rental properties estimated to be sitting empty.

In actual fact, the rental market has been in a state of decline for the past several months due to a number of factors including an increase of stock on the back of the building boom and we have also observed a lower number of shared tenancies from younger people, as many are seemingly opting to remain in their family homes.

If you are experiencing difficulties re-letting your property at the present time, we would urge that you heed to the advice of your Property Manager in relation to their opinion of current market rentals as unlike the sales market, the rental market fluctuates in shorter cycles and will likely bounce back strongly when the current over supply is absorbed.

 

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