We’re also a full year out from the peak of the boom – my research tells me that house prices in Sydney reached its’ pinnacle in June 2017, and this year has been a different story altogether.
The first weekend in June saw an auction clearance rate of 64% on the Northern Beaches. This is higher than the recent Sydney clearance rates, which have been between 55-60%.
However 66% of the properties cleared were sold prior to auction. This means that sellers are preferring to take the bird in the hand rather than run the risk of the property not selling on auction day, as there aren’t as many buyers competing for the same property.
The change in house prices since the peak of the boom in June 2017 is around 10%.
This translates to a price decline of around $130,000 on a median-priced Northern Beaches home. An entry-level freestanding home under $1.5m on the Northern Beaches was very hard to find in the first half of 2017, now we are seeing entry level home prices starting around $1.3m.
Some homeowners may have missed the memo on this last statistic. The average selling time for a home in Sydney is currently sitting at 40 days plus.
It’s taking 2-3 weeks longer to sell a home now than it was at this time last year. The extra time on market may be due in part to sellers being unrealistic in their price expectations and not adjusting to meet the market.
The Winter season should bring some stabilisation to our property market. The traditional ‘wait until Spring’ mentality will take effect and new listings on the market will generally slow, meaning more competition for those homes on the market which should keep prices stable. The Spring selling season will be a great indicator of where the market is heading for the next 12 months.
Where does this leave you if you are planning to sell in the next 3-12 months?
So long as you are informed about the current market conditions and are prepared for a slightly longer campaign, as well as presenting your home in its’ best light you should expect a successful selling campaign.
And remember; if you are buying and selling in the same market, price changes are relative. You should not put your life on hold by worrying about the economics of the housing market.
Thanks for reading,