Sydney Property Market Update 02/02/2019
It's been a very interesting opening month for 2019 in our offices.
Over the past four weeks we have sold the following properties :
- 5/115 Constitution Road Dulwich Hill : $720,000 : 2 B/R Apartment + 2 bathrooms
- 19 Agar Street Marrickville : $1,330,000 : 3 B/R Freestanding house + side driveway
- 56 & 56A St Davids Road Haberfield : $1,650,000 : Two x 2 B/R Semis on one title
- 1/59 Wardell Road Lewsiham : $465,000 : Fully renovated 1 B/R ground floor unit
- 10/11 Woodcourt Street Marrickville : $385,000 : Top floor studio apartment
- 2/682 New Canterbury Road Hurlstone Park : $535,000 : 2 B/R Unit + lock up garage
- 3/60 Arthur Street Marrickville : $580,000 : 2 B/R Ground floor unit + car space
- 47/22 Ness Avenue Dulwich Hill : $581,500 : 2 B/R First floor Unit + No Parking
How can that be I hear you ask with all the doom and gloom around the place and the media relentlessly reporting story after story of the market crashing ?
Well it's very simple, it's a little thing called life.
Life does actually go on in both good times and bad. We have just ignored the noise and got on with matching people up who want to buy and sell. It really is that easy.
Our doors opened on 2nd January this year and the amount of new enquiry from buyers starting their property search has been a pleasant surprise.
Of course the amount of money these buyers are willing to pay is very rarely marrying up with the initial expectations of our owners. But if both parties REALLY need to move on with their life and a hard working agent can "show" them the market an eventual meeting of the minds results in a happy sale.
What we have also seen is a much lower number of vendors keen to transact than in the past.
Consequently there hasn't been a potential flooding of the market with the traditional late Summer surge of stock. The good news is the overwhelming majority of owners we have been speaking to recently are selling for a reason, not a price. Circumstances like people going into nursing homes, some passing away, job relocations and retirement are strong motives to accept whatever the best price is and move on.
This is reflected in a large percentage of our current homes where the average length of ownership is beyond ten years. They are less hung up about the recent correction in prices because they have held the property long enough to understand and appreciate the overall gains made.
And many of our buyers have similar life reasons to commit to a sale despite their fears of "making a mistake" or "paying too much." Things like downsizing, births and not wanting to rent anymore can be quite compelling for people to take the plunge.
One particular sale this year involved a young first home buyer who had found something well within his price range that he liked but was very cautious and unsure. I asked him three simple questions:
1. How long had he been looking for?
2. What was his profession?
3. How long did he intend to own the property for?
His answers were - he’d been looking for six months, worked in I.T. and wanted to keep the property for at least ten years. I told him this property would have been worth half its current value ten years ago, he had seen enough homes in six months to know it was suitable and reasonably priced and whether it was worth his time to continue looking at similar properties.
When he actually weighed up how much he currently earned and what his time had already cost him he came to the conclusion that if he waited to possibly get the property for a cheaper price at a later date the savings would be marginal at best because it was taking precious time away from both his work and life.
So his choice was simple, buy it now or stop looking, continue with his work, earn some more money and return when he was ready. Realising this wasn't what he really wanted to do, he made an offer and committed to the sale which was great. I've also had other buyers do the opposite and take a break when asked the same questions.
There's still plenty of opportunity out there for everyone and we look forward to a very successful year - even if it's taking a lot more work than previously.
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