Sydney Property Market Update 16/03/2019
So, where do we go from here?
With two solid months of data well and truly under our belt I thought it might be worth summing up the beginning of the 2019 market that just flashed before my eyes like a lightning bolt.
In general, we have seen prices continue to flat line or soften with some categories of property and specific geographical regions faring better than most and, in some cases, bucking the trend altogether.
For example, there was a clear surge in new buyer numbers in the first home buyer apartment category between the $450,000 to $750,000 price range. Ironically this was easily the hardest hit sub-market in the final quarter of 2018 where it was almost impossible to find a strong prospect ready to commit. In many instances we have seen apartments we couldn’t give away just before Christmas sell quickly this year and for noticeably higher prices. Why has this occurred? To be honest I have absolutely no idea but welcome the change.
Marrickville is another hot spot attracting above average interest at the moment. We are definitely seeing higher attendances and internet hits on anything with postcode 2204 beside its name. A modern-day success story - I clearly remember the time 20 years ago I used to beg people to make the short journey south of Newtown to view a Marrickville property and being met with a furrowed brow and high reluctance. Things have definitely changed.
We have also seen a much higher level of interest in houses that fall in the entry point level for the area, namely from as low as $900,000 up to $1,200,000.
Once we go north of that range the difficulty with finance ALL our clients are experiencing tends to kick in much harder. Consequently, it is no surprise that this price point is the slowest in recorded sales activity this year.
The other very noticeable trend in the current market are the low stock levels. Whilst many predicted an oversupply of listings as many owners looked to cash in and “get out” of the market, this has clearly not been the case. My view from the appraisals we have completed this year is unless it’s a dead lined life related reason many owners are choosing to stay put and not move. The reasons for sale of the homes we have listed this year have predominantly been elderly owners either passing on or moving into aged care. The average length of ownership of these properties is well above 15 years indicating these vendors are far less concerned with the recent price corrections.
So as my headline states, where to from here?
I think it will be very much a business as usual scenario for the rest of this year with some flashes of colour here and there for certain properties.
One thing’s for sure, it won’t be boring!