Our Market - November 2023
As we step into the festive season, the buzz of Christmas celebrations is starting to fill the air, marking the rapid approach of the holiday season. It's hard to believe that Christmas is just weeks away.
November brought a notable increase of .25 basis points in interest rates by the RBA, a change that annoyed the interest of some in relation to its impact on the real estate market. This sparked more discussions among buyers concerned about potential impacts on borrowing power and heightened mortgage repayments. There's an underlying apprehension about whether this rise signals further increases in the future. Despite these concerns, November sustained robust buyer activity, yielding commendable sale results. However, auction clearance rates did experience a slight tapering. Over four auction weekends, the clearance rates fluctuated, starting strong at 85% and ending at 66%.
Here's a snapshot of the local market performance in November 2023, comparing it with November 2022:
Sold at Auction: 64 (50)
Pre-Auction Sales: 28 (21)
Passed in at Auction: 16 (16)
Withdrawn from Auction: 12 (12)
Auction Clearance Rate: 75% (72%)
Sold by Private Treaty: 42 (38)
Reflecting on the market's performance throughout 2023, it's remarkable given the persistent rise in interest rates, nagging high inflation, and an uncontrollable cost of living. Since May 2022, interest rates have soared 13 times, escalating the official cash rate from 0.10% to 4.35%. Specifically in 2023, five rate hikes pushed the cash rate from 3.10% to 4.35%. Forecasts suggest we may see further potential increases owing to inflation levels. In this challenging economic climate, the resilience of our local real estate market deserves recognition. While the decline of interest rates might not be imminent, it sparks curiosity about the potential impact on the local real estate market when it eventually happens.
What's noteworthy about 2023's rising property prices is their persistence alongside the continuing increase in interest rates. Monthly auction clearance rates display a bullish market at the year's start, maintaining an aggressive momentum, with buyers' eagerness to purchase remaining steadfast. Although there's been a slight tapering towards the year's end, it's uncertain whether the market is truly slowing down or if buyers are simply gearing up for another robust real estate market in 2024.
Monthly auction clearance rates in our local market in 2023:
Feb – 70%
March – 83%
April – 84%
May – 86%
June – 70%
July – 81%
Aug – 75%
Sept – 77%
Oct – 74%
Nov – 75%
As we approach the year's end, we're engaging with many owners preparing to sell their properties in early 2024. Exciting opportunities lie ahead, and if you've been searching for the perfect property without success this year, we hope to match you with something suitable in the New Year. If selling in 2024 is on your mind, now's the time to connect and prepare. Feel free to reach out to us.
A big congratulations to all buyers who secured their dream homes or investment properties this year, and heartfelt thanks to the wonderful owners who trusted us to assist in selling their homes. From everyone at Raine & Horne Newtown, we extend warm wishes for a Merry Christmas and a Happy New Year. May your holidays be filled with precious moments spent with loved ones, enjoying some well-deserved relaxation.