A buyer's or seller's market?

The real estate market can behave in mysterious ways and we have seen that no better than over the past 3 years. 

So what is the market doing now and what can we expect?

The COVID-19 pandemic blew all property pundits’ predictions out of the water. Rather than the universal crash we were warned to prepare for, the market reacted contrarily, delivering us with the steepest and largest price gains on record.

The market settled and then the RBA announced its first of ten consecutive cash rate rises in May 2022; at least 18 months earlier than we were told to expect. Buyers and sellers alike put their plans on ice and values started to decline.

Ring in 2023 and all expectations were for much of the same. But by mid-February it was evident things were changing again. The new wave of buyer activity was evident as buyers felt the rate cycle was about to end this phase and enter one of stagnation - or for the ardent optimists, even begin to decline.

The trouble was that sellers were still not convinced it was a good time to sell. Having watched the market turn, they feared they had missed their day in the sun. However, that was not entirely right as properties were still attracting prices above those of pre-COVID.

The consequence of all this was that demand was again outstripping supply and despite mortgages costing more, buyers were still prepared to pay for what they wanted amongst the little choice available to them.

So what is happening in the market now?

Stock levels are still low compared to average and on an annual basis, sales are -20.7% lower year-on-year. We saw an increase in new listings in the lead-up to Easter, which traditionally presents us with a seasonal peak. However, with the onset of the cooler months it is likely that numbers will fall again. There is no evidence that buyer levels will concurrently drop off so we are expecting strong competition, resulting in good auction clearance rates and robust sale prices through the winter months.

As we know, spring is often regarded as the peak selling season but remember that your competition when selling your property is other sellers. I have just brought the auction for 13 Clay Street Balmain forward by a week due to the amount of interest we have had in the property. Every day can bring another property on the market so why wait? If you are thinking of selling, my strong recommendation would be to prepare now.