Welcome to the Treak Real Estate Property Update: our regular round-up of news from the Sydney and national property markets, as well as what’s happening right here at Treak!
A little less spring in the property market’s step
Spring is usually the time of year that the Sydney property market ramps up; when more housing stock enters the market, ready for a feeding frenzy in the lead-up to Christmas. But as we edge closer to September, agents are telling us that this spring might not be as action packed as those in years gone by.
Although there is expected to be a rise in listings during spring, we’re hearing that a lot of vendors listed their properties in winter in an effort to get ahead of the competition. In short, spring housing stock may not be as plentiful as many had hoped.
A look at the Sydney property numbers
The main effect of these low stock levels is that property prices continue to grow, with no sign of slowing down, despite a dozen interest rate rises and stubbornly high inflation. Sydney property prices have risen 5.9% this year alone, and that is despite economic data that suggests Australia’s economic growth is slowing.
Sydney was host to 814 auctions this week, up an impressive 16.5% on last week’s total count of 699. The significance of this number is made even more stark when you look at the same figures from this time last year, when 624 properties went under the hammer, with just half – exactly 312 – being sold. This 50% clearance rate is lower than any recorded in the 12 months since, which reiterates the fact that we have quickly transitioned from a buyer’s market to a seller’s market.
How to buy in a low stock market
The lack of housing stock means that buyer competition is intense and clearance rates are high. For those looking to buy in such a competitive market, the key is to minimise the amount of competition by acting fast.
One of the most effective ways to do that is to get your foot in the door first at pre-market inspections, or to speak to an agent about any off-market properties that they may be aware of. We will be publishing an article next week about how to capitalise on off-market properties, so make sure you’re signed up to our mailing list to get the inside word!
Along with staying on top of pre-market and off-market opportunities, you should also be prepared to make an offer early. Your finance should be sorted before you even start shopping for properties, allowing you to put in an offer straight away should you so choose. This also guards you against missing out on your dream house just because you didn’t have pre-approval, which can be a painful experience.
Do it fast, do it right
You should also complete your due diligence, quickly but thoroughly, before making an offer. At Treak we undertake a strata report assessment (if the property is strata titled), reading the strata report (or ‘data dump’, as we call them) to find any key pieces of information that the strata report assessor may have missed in their summary.
We also conduct a development application search, to uncover any planned developments that may enhance or compromise the value and living experience of a property in years to come, like a high rise building going up next door or an infrastructure project proposed nearby.
A Treak success story
Last week we helped a client secure a property that ticked every box in their brief, in just one week – yep, it can happen that quick! Here’s how we did it.
We started with a focus session, where we went through all the potential properties that the client could’ve bought in the last six months. As it turned out, only a handful of properties were sold in that time that aligned with their brief.
Our research told us that this client’s perfect property was rare. We knew that if we found one that matched their needs and wants, we’d need to work hard and fast to secure it, as it could be months before another popped up. Luckily for us, the right property came onto the market just a few days later.
Understanding the urgency, we got proactive. We quickly found out that the vendor wanted the property sold prior to auction, as they had already bought another property and were looking to get their financial ducks in a row. We turbocharged our due diligence, completing a thorough check in only two days. We then made an offer prior to the auction, based on our appraisal, with favourable terms for both the buyer and vendor that we felt would ensure we secured the property. And that’s exactly what happened.
This experience reinforced the importance of proper planning and decisive action in a low stock, fast-moving market. Developing a strategic plan for your property search is critical, as it helps you to stand out from the competition.
That’s what we do at Treak. As experienced Buyers Agents, we provide you with the sort of competitive advantage that can be hugely beneficial in the current Sydney property market. We help you to identify exactly what you’re looking for, reveal pre-market and off-market opportunities you may not have otherwise seen, and navigate you through the process to get the best possible property at the best possible price!
If you’re ready to live out your property dreams, get in touch today.
Best,
Renae Treak
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