Breaking through the noise
If you have been regularly following what’s happening in the real estate market, you are probably familiar with the mixed and conflicting views on what to expect going forward. Some experts are suggesting we will see consistent growth moving into 2021 whilst others are predicting a potential reduction in property prices. In a conflicting market it can be hard to know who to listen to or what to believe. From our perspective we endeavour to provide you with the statistics, what our team is seeing and achieving across our business as a whole and how the local market is performing.
Current Market Conditions
On all accounts the Sutherland Shire continues to be a sought after location for property, consistently proving to be a popular area to live and raise a family. In recent weeks, our team has witnessed a renewed confidence from buyers with average clearance rates of 70-80% week to week, outperforming the national average of 60-65%. While history has shown Spring to normally bring an influx in the number of available properties on market, this year homes are selling faster than they can be replaced, resulting in lower than average stock levels and increased buyer competition.
Properties selling prior to or on auction day
Southern Sydney: 68%
Auctions competition remains strong in Southern Sydney*
Average number of bids: 15
Average result: 5% above reserve price
Saturday open home numbers
Average buyers per property inspection: 29
Is now a good time to sell?
Taking the above into account as well as the range of predictions heading into 2021, those looking to sell appear to be well placed with strong buyer competition fuelling positive results for sellers. Despite concerns around the Government’s stimulus coming to an end next year, record low interest rates has brought more buyers to the market and in many cases has meant larger budgets for those looking to secure their dream property. With lower than average stock levels and increased demand across the board, properties are also taking less time to sell today in comparison to Spring last year. Our team is currently finding buyers for listings in approximately 23.9 days, almost half the recorded 42.1 days of this time last year.
There were 700 additional buyer groups through our open homes between July and September comparative to the March to June period earlier this year. Recent sales also proving testament to strong buyer demand with 118 Siandra Drive, Kareela attracting 134 buyer groups over a 4-week period and going on to sell at auction for $1,485,000. While 1/12 Lenna Place, Jannali sold for a block record of $830,000 after only 1 open for inspection and 18 buyer groups through. Furthermore, our agents are also witnessing more first home buyers entering the market with government incentives making the process more possible for many looking to own their first home. According to ABS figures first home buyers currently account for 41.1 percent of all new loans.
The rental market in the Sutherland Shire continues to remain strong and with low stock levels demand for properties remains at a high. For those looking to invest rental prices are remaining stable, while the average number of days to find new tenants is sitting at a low of 17.74 days. 91 Carvers Road, Oyster Bay had 21 groups through, 11 applications and after only one inspection and 6 days on market secured new tenants. 3/2 Sutherland Road, Jannali reporting similar with 31 enquiries, 4 applications from 7 parties through and only 4 days on market.
If you are looking to find the ideal rental for you and your family, contact our leasing team today so that we can keep you up to the minute on new listings that come onto the market.
There has been a definite positive shift off the back of COVID-19 which has seen more and more people looking for that ideal home, allowing them to live and in many cases work under the one roof with ease. If you are considering changing your property situation this year or next, contact our team today. Regardless of whether you are thinking of selling, investing, buying or renting our team would be more than happy to assist you with all your property needs.
*Statistics provided by Cooley Auctions
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