Our Market - October 2024
During October, the local real estate market continued to reflect a softening trend influenced by rising stock levels, high interest rates, inflation, and ongoing uncertainty in the broader economic landscape. While buyer numbers have decreased and sale prices have moderated, it’s important to note that sales transactions are still taking place. In fact, at Raine & Horne Newtown, October has emerged as our largest sale volume month for 2024. Below is a snapshot of our local market performance for October, compared to the same time last year:
• Sold at Auction: 36 (56)
• Sold Prior: 40 (42)
• Passed in at Auction: 15 (20)
• Withdrawn from Auction: 25 (14)
• Auction Clearance Rate: 66% (74%)
• Sold by Private Treaty: 46 (50)
• Postponed Sales: 9
The recent months have presented a mixed bag of sales results. While some properties are garnering strong buyer interest, others are facing challenges. Despite the prevailing sense of negativity, certain listings have created competitive bidding environments, exemplifying that not all segments of the market are equally affected.
A standout example is the recent auction of 3/168 George Street in Erskineville, a 2-bedroom, 1-bathroom apartment that drew an impressive 90 buyers over its four-week campaign. With 12 contracts issued and 6 registered bidders at auction, the competition was fierce, leading to a sale that exceeded expectations.
This dichotomy in the market reflects a pattern where “A-grade” properties continue to perform strongly. Conversely, “B” and “C-grade” properties are struggling to attract interest, lingering on the market longer and often selling below initial expectations. Buyers are increasingly selective, often waiting for the right opportunity, particularly in a market that isn’t experiencing rapid growth.
In these challenging conditions, it’s crucial for sellers to focus on presentation, marketing, and selling strategy. Getting these elements right can significantly influence the outcome of a sale. Homes that stand out in terms of appeal and visibility are more likely to attract motivated buyers.
As we approach the Melbourne Cup, all eyes will be on the RBA meeting and their decision on interest rates. Many homeowners will be hoping for an early Christmas present in the form of an interest rate cut. Inflation figures released at the end of October have shown more encouraging trends, Australian Bureau of Statistics (ABS) reports Annual CPI inflation was 2.8 percent in the September quarter, significantly down from 3.8 percent in the June quarter, providing some optimism for mortgage holders, please click on the link for further details from the ABS - Consumer Price Index, Australia, September Quarter 2024 | Australian Bureau of Statistics
With less than two months until Christmas, the market is beginning to taper off in anticipation of the holiday season. Sellers looking to auction before Christmas need to list their properties within the next 3-4 weeks. Conversely, buyers are encouraged to keep searching, as the impending holiday may motivate sellers to negotiate more favourable deals.
At Raine & Horne Newtown, we are still preparing properties for auction before the Christmas deadline, while also planning campaigns for the early New Year. If you're considering selling before the holiday season or in early 2025, we would love to assist you in navigating this market.
In summary, the local real estate landscape in October showcased both challenges and opportunities. While the market has softened, certain properties continued to shine, reflecting the diverse nature of buyer interest. As we head toward the end of the year, strategic preparation and understanding market dynamics will be key for both sellers and buyers looking to make informed decisions.