Still a jumpy market but an improved rhythm was evident in November
- December 1, 2022
As we bring the 2022 selling window to a close, November delivered yet another month of adjusting market conditions that impacted buyer and seller behaviour. In most cases sellers were adjusting their expectations to match buyer demand in order to lock in a sale. However, it has become increasingly evident that buyers are seeing improved value and increasing the speed in which they’re acting. The auction clearance rate fluctuated throughout the month with Domain and CoreLogic noting big improvements towards the end of November, although the more accurate SQM Research never had the true clearance rate moving above 50%. While the market may be largely perceived as a value and opportunistic-driven environment, there are still plenty of properties that are engaging immediate interest and delivering competitive energy. The key ingredient for a successful sale continues to fall back onto sellers who need to accurately position their asking price to generate interest and buyer commitment.
The depth of the buyer pool has diminished over the past six months and with fewer ready-to-act buyers available per property, one can understand the simple math regarding making a good first impression when bringing a property to market. Throughout November we noted that many properties had to adjust price guides and move the auction date to find a buyer but this is all standard in a changing market. The big question we’re starting to review is whether we’re nearing the end of the price decline cycle. In our view we’re not far away as Sydney’s rate of price decline has dramatically slowed in recent months. At one point we were looking at an annualised decline of 24% yet this had eased back to 17% by the end of November, according to CoreLogic data. The rate rising cycle may have a few more steps to go but predictions as usual may have overshot the mark about how high rates would rise and with some hope we may see the cash rate settle around 3.5%. Once the narrative shifts and focuses more on rates stabilising, we’ll see an immediate shift in how lenders provide a better horizon for borrowing capacity and this will improve stability and confidence.
We were most impressed with a range of sales CH concluded throughout the month as our market share and geographic footprint continues to grow. Our Lane Cove office goes from strength to strength closing one of their best months, which is testament to the experienced sales team. Our success at the top end of the market continues to grow with Dan Patterson from Drummoyne securing a number of sales north of $10m. Alex Mastoris from our Annandale office secured a Marrickville suburb record with the sale of a stunning property a 349 Livingston Road. Drummoyne’s Chad and Lisa Egan have had another standout year, operating with a quiet demeanour that is far from the typical clichéd agent approach. In fact, our sales team is encouraged to operate with humility, focus and diligent care for all clients. In a challenging market we are experiencing a new level of intensity from buyers and sellers who are often frustrated with the adjusting economic environment, however it certainly pays dividends to maintain a calm approach and offer advice based on truth, knowledge and astute guidance.
