Spring Property Market Update
Real Property Buyers is an expert NSW buyers agency whose key objective is to help and educate people to make good property decisions in this challenging real estate market.
Michael Salvartsis is the founder and principal of Real Property Buyers and we share with you, his Spring property update.
At the start of 2024, many economists were forecasting official RBA interest rate cuts to take place around June 2024. This resulted in some optimism and activity across most capital cities with median prices increasing throughout the first half of 2024. This was also underpinned by a general lack of supply of stock in residential markets and significant increases in migration.
However stubborn inflation numbers and a “wait and see” approach by the Reserve Bank of Australia (RBA) over the past few months has delayed these rate cuts and many economists and leading banks are now forecasting these cuts to be very likely late this year or in 2025.
This has resulted in the major capital markets in Sydney and Melbourne along with the smaller capital markets such as Canberra, Darwin, Hobart to flatline. Over the winter season buyers and sellers were in somewhat of a holding pattern. The mid-sized capitals of Brisbane, Adelaide and Perth continued to power through (all with double digit annual growth) over the year albeit these capitals are now also losing some momentum.
According to CoreLogic 1 Nov ’24, total listings are now 13.2% above the previous five-year average in Sydney and 13.0% higher in Melbourne. Despite the rise in listings across the mid-sized capitals, Perth, Adelaide, and Brisbane are still seeing advertised stock levels more than -20% below the five-year average for this time of the year. These markets remain well and truly in favour of sellers, although the balance is starting to gradually improve.
Based on our recent Sydney client property purchases and our understanding of the market, we believe there is currently a window of opportunity for very good buying until the year end and before future and consecutive Official RBA Interest Rate Decreases which are expected in 2025. A cut to interest rates will provide the necessary boost to borrowing capacity and should help to support a further lift in confidence for households to make high-commitment decisions like buying a home.
Some recent examples where Michael has assisted in property purchases are:
Property 1
Freestanding Three Bedroom Reborn Federation Home with Innovative & Minimalistic Design and Finish
Front Terrace Plus Lock Up Garage
Institute of Architects NSW Award Winning Home
100metres to Light Rail
Just Purchased (Prior to Auction) for $2,500,000 Nov 2024
Previously Sold for $2,550,000 in 2021
Property 2
New Three Bedroom Penthouse Unit with Triple Garage & Waterview’s over Drummoyne Bay
Small Boutique Development
High Quality / Cutting Edge Finishes
Great Complex for Downsizers
Developer Seeking $3,500,000 "Off The Plan” approximately 3 years ago
Extent of Actual Waterviews and Finishes were Unknown at that point in time
Purchased for $3,070,000 July 2024
Property 3
Renovated Ground Floor Back of Block 2 Bed Unit with Open Car-Space
Older Style Block of 12 Units
Convenient Location
Steps to Woolworths, Station, Local Parks, Bus Stop
Purchased for $720,000 by Savvy Investors
Will Lease for $600 per week
What we are Observing On The Ground in Sydney
A Diversity of Housing Conditions
Some Uncertainty, Price and Demand Volatility across some geographies, markets and price points
Vendor Price Expectations are slowly being 'reined in' to achieve sales
An Increased Surge in New listings.
According to PropTrack (Oct ’24) the following regions have experienced an increase in new listings since last year:
Eastern Suburbs – 28.9%
Northern Beaches - 28.9%
Inner West - 22.7%
City and Inner South – 23.1%
Outer South West – 27.4%
Inner South West – 25.6%
South Western Sydney - 15.7%
Ryde - 15.5%
Sutherland – 37.2%
Softer Auction Clearance Rates – Circa 60%
Renovated and Newly Constructed Homes continue to outperform their unrenovated counterparts
First Home Buyer Activity continues to maintain its momentum
Increased Investor Activity
Off Market Offerings continue to remain strong
Increased Prior to Auction Property Sales / Purchases
The Market is rebalancing and slowly ‘swinging' in favour of buyers
More Choice of Stock for Buyers with Less Competition for Buyers
If you would like Michael to assist with your next property purchase, please contact him on the details below.
Bongiorno & Partners also has a working relationship with Westpac, allowing our clients to access unique lending policies. If you would like us to assist with finance for your next purchase, please contact your advisor.
MICHAEL SALVARTSIS
DIRECTOR
M +61 402 897 083
michael@realpropertybuyers.com.au
Tower 2, Level 21 201 Sussex Street
Sydney NSW 2000
Disclaimer:
Information provided by Real Property Buyers is never intended to be relied upon as specific investment advice and is not a substitute for such advice. The team at Real Property Buyers are property buyers – not financial planners, planners, economists, investment advisers, valuers, accountants, or lawyers. Before taking any action or risking any money, you should always check with your own qualified professional advisers.