Of the 872 homes that went auction in the last weekend of February, 73% sold. This is slightly down from the same weekend last year which saw a clearance rate of 81% .
The Northern Beaches again outperformed the average with a clearance rate over 80%.
Housing supply has increased in Sydney – there are currently 6.8% more homes for sale than there was in March 2015. However this is still much lower compared to the historical average.
A decade ago people moved on average every 7 years. These days people tend to move on average every 10 and a half years. And on the Northern Beaches people now live in the same home for much longer. This is primarily due to the high cost of moving, longer life expectancy, and children moving in with the in laws because they can't afford to buy their own home. Rather than trading up many owners are now opting to renovate or extend . This is a growing trend as they model the numerous renovation TV shows now on offer.
Late last year a decline in investor activity caused a decrease in our property market. Residential investor lending is now consolidating with investment loan approvals up 5.8% in NSW. The slump in the share market has meant that many investors are parking their money back into bricks and mortar.
Contrary to some negative reporting do not be fearful of a bubble bursting in our housing market – I do not see a sharp sustained fall in the Sydney property market in the near future. Keep an eye out for a higher unemployment rate or a rise in interest rates. These are the two main drivers, especially higher interest rates, that will disrupt our property market – neither of which are we are experiencing or expecting to occur in the short term anyway.
So what does this mean for sellers? Opposed to late last year where the market started to tilt after such a meteoric rise, the New year has surprisingly seen the market find a new level. I have appropriately described this market shift as from nuts back to normal. Buyers are still eager to get into the Northern Beaches property market, and the lack of property for sale means they are still prepared to pay a premium price for the right property.
Last month we sold this property for $1,480,000. It was on the market for just 11 days and the price achieved was way above the owners expectation. We had 56 buyer inspections with multiple offers resulting in a street record.
So If you are thinking of selling - let's talk!
Thanks for reading,