Today we’re taking you behind the scenes of the Sydney and Northern Beaches real estate market. We’re discussing the current state of affairs, what’s hot and what’s not, and whether it’s a good time to sell.
The current state of the NSW property market
While news outlets have you thinking the Sydney property market is all doom and gloom, that’s really not the case. Let’s break it down and start with the fact it’s definitely a seller’s market in NSW and Sydney right now. In basic terms, this means demand outweighs supply. In March, there was a 20 per cent decline in the number of homes listed for sale. This is compared to the five-year March average.
The promising thing about a seller’s market is that the drop in listings means sellers can keep prices high due to lack of competition. According to the PropTrack Home Price Index for March, prices increased by 0.27% between February and March. However, from March 2022 to March 2023, there’s still been a decline of 6.25%.
But it’s imperative to remember that a downturn is a natural real estate cycle correction after the record-breaking upturn during the pandemic. Plus, prices are still up an unprecedented 22.8% since March 2020 and the median value is $994,000.
When you put things in perspective, the Northern Beaches property market is still a promising place to be. Here at JDH, while stocks are low, we’ve noticed that prices are still holding well. So if you’re thinking of selling soon, this year is a great time to make the most of the favourable current market conditions.
Auction’s time to shine
When talking about the current state of Sydney’s property market, you have to shine the spotlight on auctions. They’re the go-to selling method in Sydney and it’s easy to see why. For example, the Sydney auction results from Saturday 18 April showed a 74% clearance rate, with 495 auctions reported and 365 properties sold.
One of our most recent sales was 5 Peacock Parade in Frenchs Forest, The three-bedroom, two-bathroom family home sold at auction for $1,955,000—$105,000 above the reserve price.
Eye on investments
Another factor driving the current Sydney property market is the rental crisis. With the return of international migrants and the Federal Government increasing its migrant intake, vacancy rates will only get tighter. This is a problem when it’s already sitting at 1.3% in March, the lowest vacancy rate Sydney has seen since March 2011.
This isn’t great news for tenants looking for a rental. But in contrast, it’s great news for property investors looking to invest in the Sydney market, as they won’t be short of tenants. Low vacancy rates will also see more people taking advantage of government initiatives and becoming first-time buyers. There are several initiatives available depending on your circumstances, but the latest is First Home Buyer Choice. This gives first-home buyers the choice of paying a smaller annual property tax instead of stamp duty.
Interest rate rises
The final factor impacting the property market is, of course, interest rates. With rates expected to hit a peak this year before declining, this has naturally caused many people to tighten their purse strings. However, not all hope is lost, as not every buyer is constrained by borrowing capacity. This includes older buyers with strong equity and foreign buyers.
Talk to us
At the end of the day, there are absolutely buyers out there waiting for their forever Northern Beaches home. So if you’re looking to sell, let the team at JDH help you get the best deal possible. We are always happy to have an informal chat about your property needs.