Market Wrap | May 2021
The Sydney housing market continued its surge unimpeded through the month of May with the CoreLogic’s Home Value Index up 3%, with an annual increase at a staggering 11.2%. What remains a prevalent factor in maintaining this level of growth is the record low interest rates which has once again been held at .1% by the RBA. This, paired with expectations that interests rates will remain low for an extended period of time have played a pivotal role in stoking Australia’s rebound in the housing market. The auction clearance rates remain strong as well, with the last weekend of May providing a 76% clearance rate.
The conversation now begins to shift to how long can this last. In our opinion the main factors which could contribute to the softening of house prices would be tighter lending conditions and an increased supply. Many lenders have already shifted their longer-term fixed rates marginally higher, reflecting an expectation for a rise in the cost of funding. With the expiry of the RBA’s $200 billion term funding facility at the end of June, we could see further upwards pressure on longer term fixed rates as bank funding costs normalize.
Inspired by the consecutive months of record results there is also the possibility of an influx of new properties to the market, increasing supply to a point whereby demand no longer is as motivated by the current fear of missing out. The Spring market, which is a notable selling period of the year due to optimal weather conditions, will be an important indicator of market conditions. Home owner’s may be recommended to take advantage of the colder months prior to this to take advantage of lower competition and high buyer demand.
Taking on a lcal perspective the market around us continues to remain in excellent shape, with both listing volumes and average prices increasing.
At present the average medium house price in Epping sits at $2,050,000 (Data supplied by Core Logic) and although a number of results are yet to be disclosed the highest price to be achieved during the month of February is that of 130 Ray Road attaining a sale price of $3,360,000.
At present the average medium house price in North Epping sits at $2,000,000 (Data supplied by Core Logic) and although a number of results are yet to be disclosed the highest price to be achieved during the month of February is that of 328 Malton Road attaining a sale price of $3,355,000.
At present the average medium house price in Carlingford sits at $1,570,000 (Data supplied by Core Logic) and although a number of results are yet to be disclosed the highest price to be achieved during the month of February is that of 28 Bevan Place attaining a sale price of $2,500,000.
At present the average medium house price in Eastwood sits at $1,990,000 (Data supplied by Core Logic) and although a number of results are yet to be disclosed the highest price to be achieved during the month of February is that of 49 Epping Avenue attaining a sale price of $2,830,000.
If you’ve been holding out for a new price appraisal, now is the time to ask by contacting Peter Hunt on 0434 821 219