A market update – and what it means for you

As you will probably be aware, it has been a strange time in the post-pandemic property market. However, things are starting to look up for Sydney home sellers. And in sought-after, inner-city suburbs such as Neutral Bay there will always be demand for both owner-occupied homes and rental properties.

Today we’re looking at what the market is doing and what this means for sellers? Here are three things to keep in mind if you’re considering a sale.

Interest rates have stabilised in the second quarter

After ten increases in a row, interest rates were left unchanged in the April RBA meeting. According to the RBA, further rises may be needed depending on what is happening in the economy.

One thing that can bring us some light at the end of the tunnel is that inflation has dropped as reported in April, from 7.8% to 7%. This is indeed good news and a step in the right direction for our economy. It shows that the tightening of the monetary policy is doing its job.

However, while the unemployment rate is still at a low of 3.5%, job vacancies are rising and this is something that the RBA needs to monitor closely.

Stronger buyer interest

There appears to be strong buyer interest returning to the market in Sydney. In fact, the clearance rate for auctions is up to 71% nationally. This has been helped by the strong buyer activity in Sydney.

There are plenty of buyers out and about and also an increased interest from overseas buyers. In addition, more first time buyers are looking to get out of the rental market as rent prices skyrocket and it becomes more viable to pay off a mortgage rather than rent.

However, it’s also important to remember that there is currently a rental crisis right around the country. This has caused a shortage in available rental properties and has shot the prices up.

What this means is that now is the perfect time for property investors to get into the market. With low vacancy rates and high rental returns, savvy investors are now looking for a property just like yours.

Prices have steadied

According to a recent article in Forbes magazine, it appears that there are strong signs of a recovery in the property market as we move through 2023.

CoreLogic has reported an increase in its Home Value Index of around 0.6%. This is across all capital cities and was recorded in March. The good news is that this is the first increase in around 11 months.

While news reports have jumped on recent property price rises in Sydney, our view is that prices have steadied but they are still above pre-pandemic levels.

Although there have been some doom and gloom headlines recently, there doesn’t appear to be much chance of a crash as we come into the cooler months.

Why not? Even though there was a downturn in the property market during the last 6 months of 2022, the current demand for rental properties is still extremely high and the return of overseas migration has just added to this rising demand.

This has also snowballed into increased demand from property buyers. This includes first-home buyers, investors and overseas migrants who are cashed up and ready to buy.

This is excellent news for sellers because with high demand comes fast sales and a bevvy of buyers lining up to view your property.

Talk to us

If you’re thinking about selling your home or investment property, don’t delay in contacting us here at HPA. We are more than happy to discuss your property sale and will assist you every step of the way.