Moving into April marks the end of the first quarter of 2022 and what a start it has been for the property market. Over the course of the March the auction clearance rate hovered above 60% for Sydney, closing the month at 66%. This, paired with the increased supply of properties entering the market has meant that a more balanced market is beginning to take form following the previous period of incredible growth.
For buyers this transition has meant that they are now enjoying a greater supply of options and are able to focus their attention on the property which ticks all of the boxes. Conversely, considering the increased level of competition on the market, sellers are now needing to be more conservative in their pricing or risk being left on the market.
Taking a closer look at our market place it is important to note that the medium housing prices for each of the suburbs our office services, such as Epping, Eastwood, Carlingford, Ermington, Dundas Valley and North Epping, either held or increased its value during March and remains blue-chip in the eyes of buyers. The most notable sales results being that of 7 Dent Street in Epping and 6 Cocos Avenue in Eastwood which both sold for $4,000,000 and $3,100,000 respectively, and reflect the continued strength of the premium market.
The most noticeable trend at present is the development of a two-tiered market whereby properties considered A Grade are beginning to separate themselves from the rest of the market. A Grade quality properties are continuing to enjoying excellent competition levels and above-market results as buyers are now able to focus their attention. Conversely the rest of the market is now moving in a much more conservative and well-balanced condition.
The elephant in the room remains interest rates and whether the RBA will begin to raise rates this year. Numerous market commentators are expecting the cash rate to be at 1% by the end of the year by way of incremental increases to begin by July/August however, this remains speculation. The RBA’s governor Dr Lowe stating “The message here is it would be prudent to plan for an increase.” This expectation has further stoked by the US Federal Reserve being increasing interest rates by .25%, with further increases plan.
What will become increasingly important in this new two-tiered market is the strategy and approach one takes in the sale of their property. One size will not fit all properties and it is essential that nothing be left to chance. Investing in the property’s presentation, as well as a more attractive pricing strategy, will become essential to a successful campaign.
If you would like receive an updated market appraisal and tailored marketing strategy for your property, I invite you to contact me. Should you also be in the market to purchase, my team would love to work with in securing your next home or investment property.
Prepared by Peter Hunt
Director | 0434 821 219 | firstname.lastname@example.org