Spring-heeled Sydney property market continues its winning ways
The latest data from CoreLogic reveals that the Sydney property market continued its upward trajectory with a 3.9% increase over the three months of spring, a result that is confirmed by Raine & Horne agents across Sydney.
“When analysing the real estate market it’s never a case of one size fits all, and Sydney real estate is a fusion of hundreds of sub-markets with different price points, which are affected by many different factors such as interest rates, foreign investment or self-management super fund activity, just to name a few,” said Angus Raine, Executive Chairman and CEO of Raine & Horne.
“That said, Sydney real estate has had a very good run since May 2012 and it’s undoubtedly due for a bit of a breather at some time.
“However, Tuesday’s decision by the RBA to leave the official cash rate on hold, combined with the availability of cheaper five-year fixed rate home loans, have the potential to get more people into the market before the end of 2014 and at the start of next year.”
There is also evidence that listings across Sydney are down, with SQM reporting that listings are down in the NSW capital by 8.1% compared to November 2013.
“A lack of listings is proving a common theme in markets across Sydney, which could result in a rush of sales as buyers with a deadline look to bed down a new property before Christmas,” said Mr Raine.
Peter Diamantidis, Sales Agent, Raine & Horne St Marys, said real estate markets in Sydney are showing no signs of a slowdown, with investors continuing to dominate transactions.
“We had the biggest November in St Marys in 25 years, and we smashed records left, right and centre,” said Mr Diamantidis.
“Our sales numbers for November were 10% stronger than our next best month, which was November 2003.”
To illustrate the strength of the market, Raine & Horne St Marys listed a 4-bedroom home at 14 Lindridge Place, Colyton on 8 November and three days later, there were 39 groups at the open home with 24 offers.
“This property sold for $575,000, whereas the average price in the area is in the high $400,000s,” said Mr Diamantidis.
“Homes in St Marys are selling in less than a week. If they’re taking longer to sell, it will be because the price is too high or it’s a rental property with no access.”
It was a very solid spring selling season for the popular Eastern suburbs property market, according to Tony Laing, Co-Principal of Raine & Horne Bondi Junction and Raine & Horne Coogee/Clovelly.
“The only consistent issue has been a shortage of properties for sale,” said Mr Laing, who noted listings in the Eastern Suburbs are currently down by 10% compared with December 2013.
“It’s a Catch-22 situation, where people are keen to sell but aren’t confident they’ll find something to buy. If they can’t find a property to buy then they’ll stay put.”
Mr Laing admits that the market isn’t as hot as it was in April, although he believes this situation has its advantages for homeowners considering a sell/buy transaction.
“The message to owner-occupiers is that it’s a good time to sell because the Eastern Suburbs property market is not moving as quickly as it was earlier in the year, and if you’re buying and selling in the same market, you should come out of the transaction with a parity result at worst,” said Mr Laing.
“There are not enough listings in the market and sales activity is being driven by pent-up demand,” said Mr Mosedale.
“Listings are down because people won’t trade out of their property until they have something to buy.
“This means we have a shortage of properties, especially as people probably won’t list many more properties now with Christmas just three weeks away. This will dry up the market further and then there’ll be a big sell off of existing stock to beat the Christmas deadline.”
“We had eight auctions last weekend and seven this weekend, so we have the listings,” said Mr Fadel.
“The big change is that we have fewer registered bidders at auctions with four or five parties now the norm compared to eight a few months ago. However four or five is more than enough bidders to keep properties in the St George region selling well at auction.”
According to Mr Fadel, the upgrader market is driving the sale of three to five bedroom homes priced between $1 million and $1.8 million.
“We are also seeing plenty of interest in Sans Souci villas with downsizing retirees leading the charge,” said Mr Fadel.
Raine & Horne Sans Souci is auctioning a stunning 3-bedroom villa at 1/161 Alfred Street, Sans Souci and already 140 groups have visited the property prior to auction.
“Almost all the interest in this property is from retirees,” added Mr Fadel.
For further media information contact:
Angus Raine, Executive Chairman and CEO of Raine & Horne on 0409 920 697
Andrew Harrington, National Communications Manager, Raine & Horne on 02 9258 5400