Recent momentum in the property market does not seem to be just “a dead cat bounce” with many indicators starting to trend upward in a more sustained way. The talk of increased migration numbers, an under resourced market for new buildings and a general lack of property listed for sale, will be helping to drive the feeling amongst buyers that if they do not act and buy now, then they may well miss out on any recovery in the market. The FOMO effect may be coming back perhaps!
Auction clearance rates show that positive momentum is being maintained with April’s clearance rate of 68% being eclipsed in May at over 70% whilst the Northern Beaches is averaging 78%. In conjunction with this the median auction sale price in Sydney is around $1,712,000 which is 7.3% above this time last year. Overall, Sydney house prices have reportedly jumped up to 3% since a low in January 2023.
So, what next you may ask? Consumer sentiment will play a big part in the way forward for the property sale market no doubt, with any further increase in interest rates having an impact on this. Fixed rate loan resets are yet to filter through in full and economic growth will likely slow this year. On the flip side, in the short term at least, many renters will be thinking about buying as rental prices continue to move upward and it is expected the premium end of the market will not be effected as badly by these circumstances.
