Combined with dwindling auction clearance rates, it’s no wonder the media is churning out negative comment over negative comment, which is having a major effect on buyer sentiment.
However the actual numbers are nothing to lose sleep over, a 0.4% decrease over October and a 0.2% decrease over September. And remember these are Sydney-wide statistics, incorporating the troubled outer west and south-western suburbs of Sydney.
In all likelihood, the Northern Beaches has not witnessed a decrease at all, and in the last 12 months your home has still increased by about 8%.
The auction clearance rate last weekend Sydney-wide plummeted to 64%. The same weekend last year it was 80%, however last weekend on the Northern Beaches the clearance rate was a respectable 75%, the highest out of the Sydney regions.
We are at a defining point in the market at the moment. The last time this happened in late 2015, it took two interest rate cuts through 2016 to bring heat back in to the market. This rate-cut lifeline will very likely not occur this time, leaving us in housing-market limbo.
But, these are the machinations of the property cycle, or in fact, any economic cycle. Values do not go up in one straight line, rather a combination of peaks and troughs that over time causes a steady rise in values.
It is easy to have short-term memory loss about this, as it’s not something we have experienced for a while. The market is owed a breather after rising 75% since 2012.
We are due a correction in the housing market, and we’d rather have this sooner than later and not risk a debilitating crash in values.
And this means sellers have now got to change their mindset, and need to stop comparing with the prices their neighbours were achieving in the sale of their homes months ago.
With the frenzy now disappearing from the marketplace it is now important that any seller has to realistically price their home in order to achieve a good sale.
As we’re getting towards the pointy end of the year, we are in the process of helping our clients prepare for an early 2018 sale. If you would like to know more about how best to prepare over the holiday period, please do not hesitate to contact me.
Thanks for reading,