Our Market - July 2023
The real estate market in July has mirrored the brisk mornings and sunny days we've been experiencing. Buyers have been proactive in their search for properties, resulting in robust sales, and homeowners are reaping the benefits of strong sale outcomes. Both property inspections and inquiries through phone and email have witnessed high buyer numbers, with potential buyers eager to make a purchase that aligns with their criteria. Throughout the last week of July at Raine & Horne Newtown, we successfully sold four properties before or at auction, and an additional one through a private treaty with a 5-day cooling-off period.
Please see statistics on how the market performed in July 2023 (in brackets is the same month last year).
Properties Sold at Auction: 36 (36)
Pre-Auction Sales: 55 (36)
Properties Passed in at Auction: 15 (28)
Properties Withdrawn from Auction: 7 (17)
Auction Clearance Rate: 81% (62%)
Properties Sold by Private Treaty: 43 (44)
Homeowners welcomed July with a sigh of relief as the Reserve Bank of Australia (RBA) decided to maintain interest rates at their current level. Additional positive news emerged towards the end of the month when inflation figures for Q2 were released, revealing a drop from 7% in Q1 to 6% in Q2. While this was encouraging, it is worth noting that these figures are still a significant distance from the RBA's targeted inflation rate of 2-3%. This development may prompt the RBA to consider holding rates again in August.
Throughout the year, we have observed a shortage of available properties on the market, contributing to the steady rise in property prices due to soaring demand outpacing supply. We hope to see an increase in the number of properties available in the market during Spring, providing more options for buyers and potentially breaking the current stalemate of low supply. This will be particularly beneficial for potential sellers who have been hesitant to list their properties due to limited options available for their own purchases.
However, it is essential to temper our expectations, as the data indicates a modest trend in new property listings on a weekly average for each month in 2023:
February – 37
March – 38.5
April – 26
May - 33
June – 36
July – 34
As we move closer to Spring, we remain optimistic about the possibility of increased listings. Nevertheless, we anticipate that it will not be a flood of properties, as many buyers would hope. If you would like to discuss your next move in the current market, please don’t hesitate to reach out as we would be only too happy to help.