Market Round Up
The Hill & Viteri Property Market Round Up for the April to June Quarter of 2022.
Welcome to the Hill & Viteri Property Market Round Up for the April to June Quarter of 2022.
This quarter was always going to be tricky in real estate with April having Easter & Anzac Day long weekends forming another Christmas type hiatus in the market. In addition, the Federal election was a distraction. These two interruptions in a market that was already losing confidence masked what was really happening.
As discussed in our previous wraps, conditions had shifted and a surge in supply combined with negative media and tighter lending saw buyer confidence dented. This has been further exacerbated by inflationary pressures that have seen the cost of living rise as well as the RBA sharply increasing the official cash rate.
So, what has been the impact on property prices?
The house market has certainly seen a change with sellers finding conditions more difficult with buyers sitting on the sidelines having now the fear of paying too much as opposed to the 2021 fear of missing out.
Now, despite all the doom and gloom our team of experienced agents are still helping our clients move. Some examples include:
18 Dubarda Street, Engadine sold at auction for $1,411,000. 3 Bidders participated in the auction with a total of 19 bids. The modest four bedroom house in central Engadine sold for $11,000 over reserve.
5 Fourth Ave, Loftus sold at auction for $1,430,000. 2 registered with 1 active at auction with a total 5 bids. This original three bedroom house in central Loftus sold for $30,000 over reserve.
You can certainly see the number of bidders and the amount over reserve changing significantly in this quarter.
Michael Virly from MVP Auctions reported a clearance rate for the quarter of 68%. This is down from 81% the previous quarter. Michael reported on average 3.7 bidders registered for auctions in this period down from 4.9. Michael also noted that 25% were sold prior which bolstered the clearance rate.
In the strata market we continued to see good sale prices but the number of sales are declining.
Derin Hill sold 10,60-62 Toronto Pde, Sutherland for $1,154,000.
Sean Donovan sold 5/122 Kiora Road, Miranda for $1,220,000.
So, I would say we are currently in a normal, balanced market but we are transitioning towards a buyers market.
In regards to the rental market, our Head of Property Management and Partner Leigh Anderson advies ‘Demand continues to be strong rental prices rising and the vacancy rate at a record low. The trend of tenants wanting more space continues. Leigh 18B Rawson Parade, Caringbah and 2 Leumeah Street, Cronulla leasing for $1,250 as examples of tenants paying a premium for good locations and more space.
Leigh also noted that investors should consider returning to the market with some good buying available and rents surging.
If you would like to know the new value of your property give the team or contact us via the website. You may be surprised just how much prices have moved this year.
As always if you have any questions or require real estate assistance please don’t hesitate to contact the team.