Our Market - April 2023
Despite the various public holidays in April that can disrupt activity in the real estate industry during this time of year, there have been several noteworthy events. Most significantly, the Reserve Bank of Australia(RBA) decided to hold interest rates steady for the first time in 10 months, which has been a welcome relief for buyers and sellers alike. We have also been recently reporting an upswing in market conditions, and this decision by the RBA has helped reinforce this trend, boosting confidence among all parties involved in the market.
Please see statistics on how the market performed in April 2023 (in brackets is the same month last year).
Market Report Stats for April 2023
Sold at Auction = 44 (47)
Pre-Auction Sales = 39 (34)
Passed in at Auction = 13 (17)
Withdrawn from Auction = 4 (36)
Auction Clearance Rate = 84% (60%)
Sold by Private Treaty = 59 (36)
At Raine & Horne Newtown we achieved a 100% auction clearance rate in April with some outstanding results. Many of our auctions experienced some aggressive buyer behaviour, a few auctions worth mentioning were:
- 60 Wardell Road, Petersham
7 registered bidders with the property selling for $1,501,000, $101,000 over its reserve price.
- 68/128 George Street, Redfern
12 registered bidders with the property selling for $1,005,000, $105,000 over its reserve price.
One of the primary drivers of these buoyant market conditions has been the shortage of properties available. To illustrate we compare several relevant statistics from this years February, March, and April markets with the same period last year and it is worth noting that at the same time last year, supply levels were still somewhat low. The auction clearance rate acts as a great barometer of market conditions, and recent auction clearance rates have indicated an upswing in market conditions and there is no doubt that the very low stock levels have boosted the market's performance.
*February, March, and April 2022
Average new listings on the market per week - 47
Average properties sold per week - 31
Auction clearance rate - 64%
*February, March, and April 2023
Average new listings on the market per week - 33 (down approx. 29%)
Average properties sold per week - 22 (down approx. 29%)
Auction clearance rate - 79% (Up approx. 23%, please note February was 70%, March 83% & April 84%, auction clearance rates have been trending up from the beginning of the year)
*These statistics only consider properties in the following suburbs Newtown, Erskineville, Camperdown, Alexandria, Chippendale, Darlington, Redfern, Stanmore, Enmore, St Peters, Tempe & Sydenham
The real estate market and our economy saw some positive news recently with the reported inflation figures. The consumer price index (CPI) for the quarter ending December 2022 was at 7.8%, with the quarter ending March 2023 coming in at 7%, confirming a continued downward trend in inflation. These inflation figures will be a key piece of economic data taken into consideration by the RBA when deciding their next move with interest rates.