The spring selling season in Sydney has arrived, traditionally the most active time for the real estate market. However, early signs suggest that buyers might have the upper hand this season, as market conditions have become more favorable for them. Sellers, meanwhile, are being warned to adjust their expectations as the market shows signs of cooling.
According to SQM Research, August 2024 saw the largest increase in property listings for the month since 2009. This rise in supply is giving buyers more options, reducing competition, and putting pressure on sellers to adjust their price expectations. While some suburbs, such as Ermington, saw standout sales—like a 930 sqm block selling for $2.92 million—other areas are showing more caution from both buyers and sellers.
Auction clearance rates have hovered around 65%, and many properties are selling before reaching auction day, as vendors look to secure deals early. Auctioneers and agents have noted that many sellers are coming to market with “unrealistic” expectations, believing their properties will command higher prices than the market is currently willing to offer. This trend is evident in the city’s inner ring suburbs, where interest rates and affordability concerns have tempered buyer enthusiasm.
In the rental market, new data suggests that the extreme rent hikes seen in the post-pandemic period may be slowing. CoreLogic reports zero growth in national rents over July and August 2024, signaling a potential easing of the rental crisis. However, affordability remains a key issue, with many tenants still dedicating a record-high percentage of their income to rent, and economists warn that the crisis is far from over.
With the Reserve Bank’s stance on interest rates keeping potential buyers cautious and a continued increase in property listings, it’s shaping up to be a buyer’s market this spring. Sellers are encouraged to stay realistic about their price expectations to secure sales in these changing conditions.
Real Estate Newsletter
This article is a curated summary of various news stories from the past week, offering insights and updates on the real estate market. 13 September 2024
