It’s official: NSW’s residential real estate sector has finally lurched into the early stages of recovery. Property prices have been on an upward trajectory for several months now, despite the consistent interest rate rises, the spectre of increasing mortgage costs and much-publicised cost-of-living pressures.
In the past fortnight the number of auctions across Sydney has risen from about 620 to more than 800 in the coming week. Analysts have revised earlier predictions that values would fall to a far rosier outlook, one that now calls for residential property prices nationally to increase by close to 5 per cent by the end of this year. In Sydney, the outlook is for values to lift between 3 per cent and 6 per cent over the same period. Some observers have tempered outlooks in recent days largely due to a slight rise in listings in several suburbs, but there will be growth either way. As for 2024, observers expect house price growth to taper off as the year progresses, moderated by a higher volume of sales triggered by those coming off expired fixed rate mortgages as well as increased affordability.
Right now, just like the unseasonal arrival of warmer weather this month, the spring home selling season has rumbled into action early in some parts of Sydney. Listings data shows extra activity in small pockets of the eastern suburbs and north shore, as well as some north-west and southwestern metropolitan areas. This is good news for buyers as the greater the listings the less likely they will be facing the prospect of paying top dollar for the property they desire. On the contrary, listings have also gone in the other direction in some suburbs making the property search harder for buyers in those areas.
In the eastern suburbs for instance, listings rose the most in Kingsford and the seaside suburb of Coogee – 19 and 18 per cent respectively according to most recent figures. Keen sellers in the north shore suburb of Wahroonga pushed listings up 27 per cent over the past three months. However, over the same time, home sales listings fell in the northern beaches suburb of Newport as well as in parts of the Central Coast including The Entrance and the popular beachside destination of Terrigal.
The benefit of using a buyer’s agent, whether you are a selling agent or property hunter, always stands. But it is in inconsistent markets such as this one, where listings are falling in some places and rising quickly in others, that the services of a buyer’s agent prove especially invaluable. An evolving market results in more sellers sitting on the fence, unlikely to commit to a stock standard marketing campaign where their property is advertised for all to see. They will instead have their home quietly available for sale off market – and buyer’s agents generally have numerous such properties on their books.
So, what is the best advice for property seekers looking to make informed decisions? Get networking. Talk to buyer’s agents, residential selling agents, investors, and aim to gather as much data as possible about the areas in which you are interested. With so much variation between suburbs coming into spring, it will pay to speak to professionals within the industry. The residential market will not be developing in a regular manner over the next several months due to continued uncertainty around interest rates and mortgage costs. Relying on the inside knowledge of others will be the only way to ensure an optimal outcome for your property buying journey.