What does the Spring market hold for sellers and buyers?

With the end of winter this week, attention is now focused on what the spring market will look like for both buyers and sellers. Will prices continue to rise, or will we see an influx of listings that potentially slow the pace down?

Before we look ahead, let’s take a quick look at what occurred over the winter months. Traditionally a quieter period, winter this year proved anything but with strong sales off the back of heightened buyer demand. Across Sydney a 0.28% increase in median prices was recorded in July putting the average property price just 2.23% below the recorded peak in February 2022 and 5.26% above where it was sitting in November last year.

Internally our team saw many properties achieve exceptional results. 9 Rossford Avenue set the highest price so far in Jannali this year selling at $2,385,000, whilst 116 Carina Road, Oyster Bay surpassed expectations by $100,000 selling for $1,450,000 after seven interested parties registered at auction. At the other end of the market 414/34 Railway Crescent, Jannali sold for $810,000 after only 3 weeks on market as did 18/24-24 Leonay Street, Sutherland at $625,000.

Turning our attention, historically spring should bring more sellers to the market, however, the past couple of years have bucked this trend. Over the course of 2021 and 2022, we saw little movement in the overall number of properties for sale with any small influxes quickly absorbed by buyers eager to secure a property. Will spring this year follow historical patterns or mimic the atypical movements of the past two years, the question remains. And more importantly what effect will this have on those looking to buy and sell?

Factors impacting the local market

Whilst no one knows for sure exactly what will occur, we can say with a fair degree of certainty that it is far less likely that stock levels will dip any lower. Let’s look at what’s affecting the local market right now to help paint a picture of how we think it may behave as we enter spring and close in on the end of 2023.

There is no denying that a consistent lack of stock has seen elevated levels of buyer interest on individual properties which has in turn seen prices increase once again. Unless we see a sharp rise in listings, this will likely be a continuing trend for the foreseeable future. High construction costs, labour shortages and builders going bust are also seeing more families shy away from building their next home and instead looking to secure an existing property.

Equally, increases in migration have seen many people renting in the Inner West and Eastern Suburbs look to the Sutherland Shire to buy as it offers better affordability. The number of first home buyers has also increased with the additional support on offer as part of the First Home Buyers Scheme. Interest rate pauses in July/August have also increased both buyer and vendor confidence with many experts predicting we are nearing the peak of rate rises or have passed it.

“With prices and vendor confidence on the rise, we are cautiously optimistic that more stock will come to market. If past trends are anything to go by, when prices start to rise more people come to market.

We are already seeing early signs with the number of available properties sitting above 600 for the first time this year.”

Nick Gleeson – Sanders Property Agents

If we see another rate pause in September that could be all that is needed to spur more owners to put their properties on the market. On the flip side, if the RBA deems another increase necessary it could mean stock levels stay relatively the same for the remainder of this year. Either way, we don’t foresee the number of buyers in the market reducing which is a positive sign for sellers.

Sellers and the spring market

For anyone who is thinking of selling this spring, listing early should put you in the best position regardless of whether stock levels increase or not. If we do see a rise, those who list early will be in a favourable position to buy and have a wider variety of properties to choose from. Those that list later could get caught up in an influx of new listings which may see price growth slow.

If your aim is to be sold and settled before the end of the year, the last weekend to auction a property allowing for a six week settlement is November 4. Whether you list earlier or later what remains key is ensuring you present your property in the best light. Spend the time cleaning, de-cluttering, and styling. A well maintained, well styled home will stand out from the moment a potential buyer sees it online to the time the sold sticker is applied. Ensuring the outside is inviting is just as important; mown lawns, tidy gardens and new plants can make all the difference when highlighting your property’s best features.

Engaging an experienced agent/agency will also go a long way to achieving the best result, especially with the uncertainty around stock levels. The right agent will be able to advise the correct pricing and marketing strategies, regardless of what eventuates, matching specific buyers to your property.

Things buyers should keep in mind

For buyers, if stock levels do rise it will be a welcomed relief with many finding it difficult to locate the right property within their preferred location. If you are looking at purchasing this spring or before the year is out, the market looks set to remain competitive. Keeping in touch with agents so you can be notified of new listings will be key.

Keep in mind that even if an increase of stock does eventuate it is unlikely to bounce back to normal balanced conditions (circa 1,000 available properties) straight away. It will take some time for potential sellers who don’t list within the first month of spring to prepare their homes and come to market.

Key takeaways

If you are looking to sell, low stock levels are providing a unique opportunity to capitalise on high buyer demand without the usual level of competition normally experienced as we enter spring. Listing early in September or October could be a good option to take advantage of the demand and to beat any influx of listings. If finding your next property is a concern, there is always the option to ask for a longer settlement that extends into the New Year.

For buyers staying connected with agents is key to moving forward. Not only will you gain early access to listings, but you’ll also be notified about the off-market opportunities which make up around 15% of sales within the Sutherland Shire. If you would like more information our experienced team is on hand to assist with all your real estate needs.