It’s no secret that property prices are soaring across many parts of Australia.
It only takes a stroll around your local neighbourhood on an idle Saturday morning to see for yourself that the property market is as buoyant as it’s ever been. Buyers are out in full force – there are crowds wrapped around apartment stairwells, spilling out into front gardens and auctions are continually attracting thick crowds of eager bidders. Jill Henry from Stone Linfield recently sold 139 High Street, Willoughby, and experienced an overwhelming result across the board, selling at auction for $3,000,000 ($550,000 over reserve), with 18 registered bidders and 44 contracts received prior to sale.
139 High St, Willoughby – Stone Lindfield Sold at auction for $3,000,000 ($550,000 over reserve), 18 registered bidders, 44 contracts received prior to sale
We won’t sugar coat it – the market right now can be challenging for buyers due to limited stock.
The winners? Those looking to sell.
Thinking of selling?
If you’ve been sitting on the metaphorical fence contemplating selling, there’s truly never been a better time. A perfect storm of low interest rates, low stock, and even lower supply has pushed house prices up – and there’s no sign of this bubble bursting.
According to CoreLogic data, Australian property values grew at their fastest rate in 17 years during February. This growth is in stark contrast to the pessimistic views shared by the big four banks last year in the midst of the pandemic. Economists and banks alike collectively agreed the market was doomed. Fast forward twelve months and Westpac is now forecasting 20 percent gains in the housing market over the next two years.
A prime example is recently sold property: 100A Sutherland Road, Beecroft which culminated in a sale of $2,305,000 – $500,000 over the vendors’ expectation.
100A Sutherland Rd, Beecroft – Stone Beecroft Sold for $2,305,000 ($500,000 over reserve)
Record low-interest rates are undoubtedly underpinning the house price boom. The Reserve Bank of Australia has reiterated that interest rates will hover just above zero for at least the next three years despite a steadily rebounding economy and increased consumer confidence.
For buyers – there’s never been a better time to borrow.
For those thinking about cashing in – there’s never been a better time to sell. Particularly with buyers’ interest at an all time high (relative to available stock on the market). Stone Parramatta recently sold the property, 1 Ronald Avenue, Dundas for $1,470,000. Adam Denina emphasises buyer interest and demand with 18 registered bidders at auction, 123 inspections, and 234 enquiries.
1 Ronald Avenue, Dundas – Stone Parramatta. Sold for $1,470,000. 18 registered bidders at auction, 123 inspections, and 234 enquiries
Beyond the economic climate, the combination of increased savings borne out of cautious spending last year and an almost palpable fear of missing out are contributing to the price rise. As prices soar, so too does the interest of consumers looking to buy outside of their local area – whether that be for an investment or a sea change… Stone Lake Macquarie / Newcastle have experienced increased interest from Sydney buyers. 29 Frederick Street, Merewether sold to an out of area (Sydney) buyer for $130,000 over the reserve, against 11 other bidders.
29 Frederick Street, Merewether – Stone Lake Macquarie / New Castle. Sold for $130,000 over reserve, against 11 bidders.
This fear of missing out is reflected in the auction clearance rates. Each weekend the auction clearance rate across the state is steadily creeping closer and closer to a perfect score – most recently it was 87%.
Bidders come prepared with bigger loan amounts pre-approved. They’re increasingly ready to fiercely outbid other buyers, they’re no longer willing to accept missing out on what could be their dream home. The result? Properties across the state are selling for much higher than reserve. One such property, 50 Vista Street Sans Souci, was sold at auction by Stone Sans Souci Principal, Ray Fadel for an enormous $460,000 over reserve.
50 Vista Street, Sans Souci – Stone Real Estate Sans Souci. Sold at auction for $460,000 over reserve.
The bottom line? 2021 is a seller’s market.
Other standouts from across the Stone Real Estate network:
Craig Bailey, from Stone Real Estate Southern Highlands, sold 5D Hazelton Drive, Moss Vale. Under offer within 24 hours. Price guide $2m. Sale price $2.15m
Sales Agent Rebecca Leo from Stone Real Estate Palm Beach sold 1003/16-18 Seventh Ave, Palm Beach for $1,240,000 after the first opening.
Malcolm Parkinson from Stone Real Estate Mornington, Victoria sold 32 Petalnina Close, Somerville for $1,245,000 which broke the street record by $400,000