Property Market Update
The last 12 months have felt like a rollercoaster in the property market particularly with the impact from economic factors like rising interest rates and historically low numbers of properties available for sale. In reality, the market in Bella Vista, Norwest and the greater Hills District remains buoyant with sale prices remaining strong.
“We moved through a period of nearly 30% growth in our national index between 2020 and mid-2022, which was the fastest growth cycle on record. Then we experienced a 9% drop between May 2022 and early 2023, which again, was one of the fastest drops over a relatively short period of time. And now we’re back into this new phase of a positive inflection in housing values,” explains Tim Lawless, from CoreLogic.
The property market in the Hills District has gathered momentum over the June quarter, producing the steepest quarterly gain since late 2021. House prices have now risen for two consecutive quarters, pushing annual growth for some suburbs into positive territory for the first time in a year. Standout suburbs are Beaumont Hills and North Kellyville.
Rental vacancy rates have edged slightly higher from 1% to 1.2%, however, the rental market remains extraordinarily tight. With no adequate supply on the horizon and net migration projected to reach 1.75 million between 2023 and 2028, vacancy rates are likely to remain low. The tight supply in the rental market has also pushed rental prices higher.
Auction clearance rates dipped to below 70% at the beginning of August which is the first time this has happened since March, however have since been steadily increasing week on week and last week resulted in 77% clearance rate.
We have clients busy preparing their homes for sale as more stock is flowing into the market at the end of August and early September for the traditional spring selling season. As always, homes that are well presented for sale are finding buyers quicker than those that are not and our average days on market for 2023 is sitting at 28 days.
For more information about your home and the immediate market around you, get in touch with our team for a quick update. Call 02 9634 3444 today.