July – we wrap a surprising month for the property market

July is often a month when many Sydneysiders flee to Europe, Asia or the snowfields as school holidays consume a fair amount of the month. We noted that auction volumes dropped by 23 per cent through July, reflective of many people being away and taking a mid-year break. That said, even with less volume the wider Sydney clearance rate was pegged below 50 per cent by SQM Research, which reflects buyer hesitation and a lack of confidence. Hanging over the head of the market through July is this ongoing chatter about the cash rate, with any thought of rates being cut now well and truly extinguished and replaced with a higher chance of rates being increased.

While buyer sentiment is subdued, we’re continuing to trade a wide array of real estate and in short time periods. The path from launching onto the market to being sold is taking a few more twists and turns, which is quite normal in a conservative market, but the end outcomes are still very positive. The bright spot in the market is that general enquiry levels are excellent and foot traffic at opens remains healthy. This is a value-driven market and for any seller currently listed or about to launch their property, you need to have a price guide aligned with broader buyer expectations. We’ve seen plenty of evidence of sellers remaining overly ambitious with their target range – which may have been from poor agent advice – and these properties are languishing online.

 

All our offices had plenty of success through July and despite it being considered a bit of a holiday month for many people, we listed and sold 30 per cent more than during the same period last year. Our Balmain office had the area’s strongest auctions and best clearance rate in the market, while Drummoyne, Annandale, Petersham, Earlwood and Lane Cove all had wonderful success stories and a high level of client satisfaction. We’re all tapping into our bag of skills and resources to ensure our clients’ selling experience positions them to achieve their property goals. There is no question that our collective shared database of more than 250,000 people is playing a pivotal role in connecting active buyers with our listed properties.

 

We now turn our attention to the Spring selling cycle and a very important RBA meeting in August that could really determine market sentiment for the season. A rate increase would be a big blow to confidence while a stable cash rate would be viewed as a positive, so we’ll be watching with close interest and hope the July 31 inflation data reflects that the climate is cooling.