Our Market - June 2024

As we wrap up the financial year, the local real estate scene has shown impressive resilience, marked by strong sales and a robust auction clearance rate of 78% for the month. While these figures paint a picture of a buoyant market, it's important to note the nuances and complexities at play. Owner-occupiers are currently driving most of the buyer activity, while investors are notably sidelined due to prevailing interest rates. The cautious sentiment among owner-occupiers has been influenced by recent inflation upticks, sparking speculation about potential interest rate hikes by the RBA in the near future.

Here’s a snapshot of how the market performed in June 2024, compared to the same period last year:
• Properties Sold at Auction: 69 (37)
• Properties Sold Prior to Auction: 44 (29)
• Properties Passed in at Auction: 14 (15)
• Properties Withdrawn from Auction: 17 (3)
• Auction Clearance Rate: 78% (70%)
• Properties Sold by Private Treaty: 43 (32)

June saw several standout auctions at Raine & Horne Newtown with high levels of interest and competitive bidding that exceeded expectations. For instance:
• 8/18 Ethel Street, Erskineville: A spacious 3-bedroom townhouse attracted 74 inspections and 17 contract requests. With 6 registered bidders competing via 13 bids, the property sold well above the owner's expectations.
• 56 Chelmsford Street, Newtown: Despite being unrenovated, this 2-bedroom terrace drew 55 inspections and 17 contract requests. With 7 registered bidders trading 40 bids, the property also fetched a price beyond the owner's initial expectations.

Despite these successes, the market remains somewhat unpredictable. While certain properties command significant attention, others struggle to attract interest. Notably, the market for 2-bedroom-plus properties appears stronger compared to studios and 1-bedroom units. This divergence is likely due to the higher sensitivity of investors and younger buyers to current interest rates.

Buyer inquiries have tapered off recently, compounded by adverse weather impacting open home attendance throughout June. The prevailing high interest rates and recent inflation reports have further contributed to this cautious atmosphere, with speculation rife about potential RBA moves. Looking ahead, the RBA’s decision-making on interest rates, which we expect will be influenced by the June quarter inflation data, will be pivotal. Buyers and sellers alike are closely monitoring these developments as they navigate their next moves in the property market.

For any enquiries or to discuss your real estate plans, feel free to reach out, we're here to provide guidance and support tailored to your needs.
 
Disclaimer: Please note all information contained in this report is merely our opinion, it should not be relied on or considered advice.