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Are you ready to step into the property market in 2023?

Welcome to the very first Treak market update of 2023: our regular round-up of news from the Sydney and national property markets, as well as what’s happening right here at Treak.

Let’s get to it!

There are fewer properties…

The Sydney property market faces one issue above all others: supply.

There is currently a shortfall of housing stock across the metro area, with almost every region feeling the effects. A look at the numbers shows how acute the issue is: there are currently 31.5% fewer listings on the market than the average over the last five years.

Perhaps a fairer comparison is against numbers from the same time last year, but even then the current housing stock levels are 2.9% down.

Dr Nicola Powell, Domain’s Chief of Research and Economics, says that the low supply is “helping to keep prices stable”, slowing the precipitous decline in property prices that we’ve seen in the Sydney market over the last couple of years. Many sellers are sitting on the sidelines, delaying the decision to list their properties while they wait to see how the situation evolves.

The picture is slowly becoming clearer, and it appears that the worst of the price decline may have passed, at least as far as the quarterly numbers go. The September quarter bore the brunt of the initial shock of rising interest rates and inflation, resulting in a decline of 5.2%. While the December quarter still saw prices decline, it was at the far less dramatic rate of 2.1%, per Domain’s House Price Report.

…but more (first time) buyers

With the worst of the economic shock seemingly behind us, buyers have been busy adjusting to the new normal. They are beginning to return to the market en masse, despite this new normal involving higher interest rates, reduced borrowing capacities and budgeting in a more considered, forward-thinking way.

Anecdotal evidence comes from Adrian William Real Estate, who reported the following on 30 January:

“Over the last seven days, we’ve had 558 prospective buyers through our properties for an average of 26 groups per property on weekends and 6 groups per property on weekdays. Most inspection attendees are first home buyers, eager to dip their toes into the market following the changes to stamp duty laws that took effect on 16 January 2023.”

Those stamp duty changes are proving an enticing carrot for new entrants into the property market. Under the First Home Buyer Choice scheme, as of mid-January, eligible first home buyers who sign a contract of purchase don’t have to pay stamp duty, provided they choose to pay a smaller annual property tax, and provided the price of the property doesn’t exceed $1.5 million.

The similarly themed Shared Equity Home Buyer Helper scheme, which helps single parents, older singles and key worker first home buyers to purchase their own home with as little as a 2% deposit, is also driving an increase in buyer numbers.

Investors too are returning to the market as rent yields begin to rise. All in all, the competition for limited housing stock is very much hotting up.

Low stock, a competitive market: we’re here to help

At times of low housing stock and high buyer demand, going to an open inspection can be an intimidating experience: queues stretching out the door, moneyed-up investors quietly whispering as they knock on walls, price guides that you never know whether to trust.

If you’re currently feeling a little flat about searching for a property, there is a better way: consulting a buyer’s agent like Treak.

A buyer’s agent is a property professional who represents you, the buyer, and who does everything from finding appropriate properties to negotiating the very best price. With deep industry knowledge, a buyer’s agent can find off-market and pre-market properties that a buyer wouldn’t otherwise have access to. We maintain good relationships with local agents, and we know both how much a property is worth, and how to negotiate the lowest price possible.

We source and inspect properties and shortlist the very best according to your needs, wants and budget. We can perform all necessary due diligence, including development application (DA) checks, pricing research, school catchment checks, strata reviews, and building and pest reviews. We can bid for you at auction, and we can advise on ways to increase the value of the property beyond the standard equity appreciation.

But perhaps most importantly, we help you secure your dream home sooner. In current market conditions it takes the average buyer approximately nine months to purchase a property. Our average is six weeks! You get off the dreaded hamster wheel of attending inspections only to be outbid at auction, which saves you serious time, stress and disappointment.

A buyer’s agent can be the edge you need in a competitive real estate market, so why not get in touch today?

Happy hunting,

Renae Treak


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