2021 was an incredible year for the Sydney property market, with Australian dwellings up 22.4% over the year; the highest annual rate of growth since June 1989. Underpinned by low levels of stock and increased buyer activity due to increased availability in extended lockdowns and record low interest rates, with the RBA currently holding the cash rate at 0.1%. The end result was significant price growth based on the demand outweighing supply, which generating some incredible results. One such result was a street record our office achieved at 3 Second Avenue, Eastwood which sold under the hammer for $3,910,000.
Looking forward into the year ahead it is my observation that increased supply will generate a more subdued price growth. This is already evident with the Sydney market experiencing a 0.6% price growth for the month of January. Further disruption is expected with Easter taking place later than usual and the upcoming election taking place no later than the 21st May, which always precedes relative market inactivity whilst buyer/sellers await the outcome. Borders re-opening and people travelling again mean that school holidays will once again play a factor in the market meaning strategy over timing will be essential to campaigns.
Adding to this is the much-anticipated lift in rates at some point this year by the RBA and a shift in sentiment is sure to follow.
Opening this year, I have observed a strong resurgence from buyers due to a pent up demand from the close of 2021, along with new buyers now more confident in entering the market. This however, may shift over the course of the year for the very reasons outlined above.
My advice to anyone who had been considering selling in the next 12 months, would be to bring their plans forward as soon as possible to limit the risk of increased competition due to oversupply.
If this is something which you would wish to discuss further please feel free to contact myself.