Coming into the new year Sydney’s housing value has continued to rebound from the previous slump with a value increase of 1.1% in the first month of the year. This now takes the annual growth rate in Sydney to 7.9%; the fastest pace of growth for a twelve-month period since December 2017. Moving closer to home, the Epping market showcased an excellent close to 2019 with a high volume of transactions occurring, including a number of the year’s highest property values being achieved. Although too early to hedge any bets on the property market’s direction for 2020, as it has shown over the last twelve months how quickly it can change, buyer confidence and urgency appear to be the current drivers for what is shaping up to be an excellent first quarter for the year.
Taking on a local perspective the Epping market continued to enjoy strong results to close out 2019, showcasing the highest valued transactions for the year such as 42 Boronia Avenue and 9 Hillside Crescent which both sold under the hammer for $3,502,000 and $2,990,000 respectively. As the property market for a new year traditionally takes place following the Australia Day long weekend the true results for opening of 2020 are yet to be revealed. On the ground however, buyer activity at the opening stanza of the new year has been notably high.
As a case study our office launched two apartments at the beginning of the year for sale at 5/24-32 Edensor Street and 2/2-4 Edensor Street. Both properties hosted over 60 groups each during their premier open homes, a record for our office, which further resulted in 13 offers being received. Offer acceptance on both were soon followed with prices either above the asking range or at the upper echelon were attained. By this, both properties were sold in 7 days and provide a testament to a growing buyer interest in the Epping area.
One of the main drivers of the high auction clearance rates at the close of 2019, a part from record low interest rates, was the unseasonably low supply of properties on the market as vendors remained cautious from the recent slump in the market. The direct result of this was competition for properties which were on the market to be unusually heated. Moving into 2020, it is expected that this caution give way to a new wave of optimism amongst vendors. As shown by the recent influx of properties to the market, this certainly appears to be the case. With a growing number of properties on the market a clearer picture of market conditions will be attainable as demand is gradually met by supply and more results are able to be recorded.
With the RBA’s recent decision to hold the interest rate at the record low 0.75% it’s certainly apparent that confidence in a recovering market is strong. This is, of course, not taking into consideration outside factors such as, the global economy, which have the potential to turn markets instantly. It is by this that I recommend to all of my clients not to base their campaign strategy solely on market conditions and to invest in best preparing their property for the market. Whether it be strategically, or through presentation, property only has one chance at a first impression from the market and it is never my strategy to leave anything to chance.
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