Mohamad Zraika – Valuations Operations Manager, NSW
The Sydney market has felt the impact of the RBA’s decision to lift rates, with market sentiment the lowest it’s been in some time. Listings have declined, and most suburbs have experienced falling property values.
It appears that buyers now have the power and are steering away from less desirable properties, which have suffered the most significant drop in values. This switch in the balance of power has seen plenty of vendors opt for a price guide listing, and as a result, the auction clearance rate is down.
On a positive note, the more affordable regions in the west and south-west of Sydney have not been hit as hard, with the more affordable sub $850,000 market still performing strongly. The rental market across Sydney has also rebounded on the back of increased demand, and we have seen a significant increase in rental returns in recent weeks.
While the market has softened, agents are confident that vendors are simply waiting for the winter period to conclude before listing their home, so there is still an expectation of a busy spring.