Our Market - August 2023

Below is the content for our August 2023 Market Report:

Whilst we enjoyed plenty of sunshine throughout winter, I am sure we are all excited to see it end and spring begin!

Throughout the month of August, our local real estate market stood strong, maintaining its resilience. As anticipated, the market experienced a surge in available properties, a clear indicator of its vitality. Over the past five weeks, a total of 253 new listings emerged, showcasing a significant 35% increase compared to the preceding five weeks, during which we saw 185 new listings. Remarkably, despite this rise, the enthusiasm among buyers to make purchases remains unblemished. We continue to witness robust buyer activity and intense competition on the auction floor.

A testament to the market's vigour is the success story of 6 Darley Street in Newtown. Just last Saturday, this charming 2-bedroom terrace was put up for auction, and the results speak for themselves. Throughout its marketing campaign, 82 potential buyers explored its allure. A dozen contracts were issued, setting the stage for a competitive showdown at the auction. The event drew four determined bidders, engaging in a spirited bidding war that ultimately drove the final price well above the vendor's initial expectations.

Now, let's turn our attention to the numbers that matter, a snapshot of our local market's performance in August 2023 (in brackets is the same month last year).

Market Report Stats for August 2023

Sold at Auction = 47 (37)
Pre-Auction Sales = 37 (37)
Passed in at Auction = 16 (27)
Withdrawn from Auction = 12 (14)
Auction Clearance Rate = 75% (64%)
Sold by Private Treaty = 34 (44)

While buyer interest remains strong, it's worth noting a slight adjustment in auction clearance rates, moving from 81% last month to the current rate of 75%. This can be attributed, in part, to the increasing number of available properties, providing buyers with greater options. Additionally, there's a minor decrease in buyer registration at auctions. Nonetheless, those participating are still eager to contend for their desired properties. As the spring season unfolds, it will be intriguing to observe how property volumes develop and their influence on market dynamics. For the present moment, the prevailing buyer demand keeps the market's competitive spirit vibrant and alive.

Turning our attention towards a burning issue in the real estate realm – the rental crisis. It's an undeniable challenge, and while some fingers point towards tenant-landlord dynamics and the call for stricter legislation, it's clear that this crisis roots itself in a fundamental imbalance between supply and demand.
Consider this: among the last 50 properties we've had the pleasure of facilitating the sale of at Raine & Horne Newtown, a remarkable 70% were once in the hands of investors. However, a very concerning transition is underway. Presently, a mere 14% of these properties are now owned by investors. The cause? A complex blend of factors, from a recent surge in interest rates, approximately tripling interest repayments in the past year, to a growing lack of appeal in property investment due to increasing costs, and the call for more regulation. The most promising solution? Attract more investors & build more rental properties to bridge the ever-widening chasm between supply and demand, offering a lifeline to a market that's navigating tumultuous waters. This resolution comes under the purview of the government, which is in dire need of prompt action to foster increased construction and expedite the process with reduced bureaucratic hurdles.
 
If you would like to discuss your next move in the current market, please don’t hesitate to reach out as I would be only too happy to help.