Yes, we are back at work!
I hope you aren’t and continue to enjoy your holiday in Sydney or somewhere else in the world.
So what will 2018 hold for us in regards to Inner West property?
Well, I’m glad you asked.
As the next twelve months unfold I see a very even market bedding itself down for the long term. From my observations over the past twenty plus years in sales, you usually exit a boom the way you entered it and I see no different phenomenon here.
Since the GFC way back in 2008 (was it really that long ago ?) the Inner West has been a juggernaut, the shining light of Sydney property price growth. This has led to an unprecedented long-term continuous period of price growth. So much so that the stark disparity between the East and the lower North shore a decade ago is far less pronounced today. The convenience of our area in an increasingly busy Sydney is no longer an undervalued secret anymore.
I, therefore, envisage a period of minimal price growth across all suburbs lasting years rather than months. I don’t agree with the doomsayers in the media who predict further significant price corrections for one very simple reason – supply.
Yes, the market has plateaued and yes buyers have more time to make a decision and are less likely to pay whatever price the owner wants. However, if the chronic undersupply of homes we have experienced continues, and our early listing levels suggest it will, I see a difficult time for both the picky buyer and the bargain hunter. With interest rates still at historic lows and no major economic indicators for property, such as employment, wages growth, inflation and migration, giving any strong indication yet that a movement up in the short term is imminent most owners are still under little pressure to sell.
The bottom line for both parties in an even market is to be realistic in your expectations and prepared to meet the other party halfway otherwise you will probably be left empty-handed.
Looking back on the Auction results of 2017 it will be extremely difficult to back that up in the next twelve months.
If you missed our Report simply click on the link:
In brief, the clearance rates for our three core suburbs were as follows:
Auctions - 310
Sold - 173
Sold Prior - 53
Passed In - 72
Withdrawn - 12
CLEARANCE RATE: 72.90%
Auctions - 143
Sold - 76
Sold Prior - 39
Passed In - 24
Withdrawn - 4
CLEARANCE RATE: 80.42%
Auctions - 38
Sold - 23
Sold Prior - 3
Passed In - 7
Withdrawn - 5
CLEARANCE RATE: 68.42%
The most interesting point to make about these figures was the final quarter of the year was by far the lowest for all three suburbs. Both Hurlstone Park and Marrickville were heading for a result very close to or above 80% before an abrupt end came to the highly competitive Auction dynamic.
As we head into the end of February and the first weekend of large Auction numbers it will be interesting to see if this trend continues.
Next week I’ll write about our specific Auction clearance rates and how they compared to the industry average.
All our properties in the menu below are available for inspection by private appointment. If you are interested please feel free to contact our office anytime to arrange a viewing.