What’s Really Happening in the Market?

Whenever I meet up with clients and friends, this is the first question I get asked: What’s really happening in the market?

That’s why I would like to give you a bit of an insight into the complexity of what drives our real estate market.

Well, my simple answer to this question is: We are living in a “real” market today. That means everything can be sold provided the agent promotes the sweet spot on price or when the reserve set is at a point where the buyers believe they are getting value. In a real market there are less “out of line” sales, sales that take place well over the expected market value, although if positioned well on price, the natural competition nudges the price a small percentage above a comparable property in the same area.

Where’s the Sydney Market Heading to?

Media reporting plays a big role. Yes, reports are true:

• Overall the Sydney home auction market is sliding.
• Sydney did report its lowest auction clearance rate of the year last Saturday.
• And rises in interest rates by all four major banks might have spooked some buyers, particularly in the lower income sector.

But despite the fact that confidence is fading for some buyers – our experience shows that the market in the eastern suburbs has a life of its own. Buyers looking in our area are also currently more price-sensitive, but note: There are more desperate buyers as well!

That’s why I still believe that now is the time to sell as well as buy – with a more level playing field for all.

Will the Market Soften Further?

Possibly, but this will be delayed in the eastern suburbs due to stock levels which seem to be slowly flowering. The influx is not quite keeping up with enquiry rate yet. And with 2016 approaching fast, we have already lined up several properties for New Year campaigns.

Overall I believe that the market in the eastern suburbs will continue to be steady.

But just to show you that we do really buck the trend here at Ray White Double Bay: During our latest auctions on Thursday, October 22nd, we sold 9/10 properties listed for the night. 33 per cent were even sold before the balance on the night! All as a result of good management and a very strong finely tuned database. This week we registered another two sales that only had one inspection, which is always hard to manage as it is a difficult decision for a vendor to take the first offer or buyer that inspects the property.

Focus on “Buyer Matching”

These dream situations are not happening by chance: We have been able to repeat them on many occasions because of our focus on our “Buyer Matching System”. Our collaborative system allows our sales team to pool hundreds of buyers that have attended open homes and marry them to a specific property. Working collectively is a real eye opener and a Ray White difference that sets us apart.

One of our really exciting sales this month was 7 Wunulla Road, Point Piper. We achieved full price, a range heading well towards the $20,000,000 mark. A real endorsement that the market at the top end has a lot of energy still! Another one of our top end properties currently for sale is 24 Victoria Road, Bellevue Hill which has had several competitive offers that may intercept the planned auction date – Tuesday, 10th November 2015.

November and December are shaping up to be a great time to sell and we have listed some really special properties for auction.

• 43 Streatfield Road, Bellevue Hill: 5 bedrooms, 3 bathrooms, 4 parking, on 664 m² of land
• 55 Beresford Road, Bellevue Hill: 4 bedrooms, 4 bathrooms, 2 parking, on 620 m² of land
• 170 Military Road, Dover Heights: 5 bedrooms, 3.5 bathrooms, 5 parking, on 537 m² of land
• 4a Spencer Street, Rose Bay: 4 bedrooms, 3 bathrooms, 2 parking, on 285 m² of land
• 13a Raine Street, Woollahra: 4 bedrooms, 4 bathrooms, 2 parking, on 197 m² of land

If you are also thinking about selling, we recommend you plan ahead. Don’t hesitate to ring us now to plan the best approach for a sale that is comfortable and maximises price.

We are always looking forward to hearing from you.

Warm regards,
Michael Finger