Our Market - September 2023

With the Spring real estate market in full swing, we are delighted to report that the market's robust performance shows no signs of waning. Buyer enthusiasm, spanning all segments of the market, remains strong, and here at Raine & Horne Newtown, we are proud to have achieved remarkable results throughout September. Let's highlight a couple of noteworthy examples.

Property Spotlight 1: At 8/288 Lawrence Street, Alexandria, a charming ground floor 1-bedroom apartment. This property attracted a healthy 40 buyer inspections, with 9 prospective buyers requesting contracts. On auction day, the competition was strong, as 4 buyers vied for the property, ultimately driving the sale price well beyond the owner's initial expectations.

Property Spotlight 2: On the other end of the size spectrum, 12 Ferndale Street Newtown, a spacious 2-level 4-bedroom home, made a significant impression. A very generous 74 buyer inspections took place, resulting in 11 contracts being requested. The interest was intense, even before the auction, with several eager buyers making offers, ultimately leading to a sale before the scheduled auction, achieving a price that far exceeded the owner's initial expectations.

Now, let's shift our focus to the significant figures – a glimpse into the performance of our local market in September 2023 (Comparative data from the same month last year in brackets):

Properties Sold at Auction – 62(29)

Properties Sold Prior to Auction – 52(23)

Properties Passed In at Auction – 23(21)

Properties Withdrawn from Auction – 10(15)

Auction Clearance Rate: 77% (60%)

Private Treaty Sales – 58(40)

There has been considerable speculation regarding the Spring market's trajectory, with some anticipating a flood of properties hitting the market, potentially leading to an oversupply and a decline in prices. While we observed a substantial supply increase in August, up by 35% from July, the trend reversed in September. The decline in new listings, with only 177 coming to our local market in September, represents a 30% drop from August. This decline suggests that the flood is not coming, and demand will likely continue to outstrip supply, exerting upward pressure on property prices.

As interest rates have remained stable since June 2023 and many experts tip this to continue, combining this with the current robust market conditions, don’t be surprised if property prices continue rising.

Please feel free to reach out if you're considering your next move in this dynamic market. We're here to provide expert guidance and support for your real estate needs.