Strong demand drives prices towards their peak
The Sydney market is showing its inherent and enduring strength right now. It appears that intense buyer demand is absorbing any uplift in new listings hitting the market. According to CoreLogic, prices for houses and units combined rose 0.6 per cent in May and 7.4 per cent over the past year to $1.15m, meaning they’re just 1.4 per cent below their peak in January 2022. Individually, houses now sit at a median of $1.44m while units sit at $848,961.
Sydney dwelling prices have been rising steadily month-on-month and predictions are that values will continue to increase, although a little more slowly than they did in 2023, which means that a new record is likely to be set soon. Auction clearance rates have also remained steady throughout the year, highlighting the depth of buyer demand. Last Saturday’s auction clearance rate for the Upper North Shore was 72.8% with a median price of $2,016,500.
More investors are entering the Sydney market, recognising that, despite higher prices, there is a current window of opportunity and that in 12 months’ time, properties bought today could yield a solid return on investment. The number of buyers we are meeting at open houses is surprisingly steady given the winter North Shore market typically slows down due to reduced levels of property for sale and mid-year school holidays.
The Sydney housing market is not uniform, with certain areas significantly outperforming others. The good news is that the Upper North Shore market is doing particularly well, as confirmed by the auction clearance rate. Many premium newly built homes in St Ives (8), Turramurra (3), and Pymble (4) have transitioned from auction campaigns to private treaty listings with set prices. In June, St Ives saw 41 sales.
Now is the time to start preparing your property for the Spring selling season. We can assist you with getting your property ready for sale from maintenance, painting, gardening and styling just to name a few. Contact me to find out how my team can assist.
