Four Seasons in One Market
There are renewed signs of confidence and energy entering the market with solid demand for good properties that are well marketed. Last week 60% of Auctions at Harcourts Cooper & Co were sold under the hammer with an average of 2.3 bidders across all auctions. There appears to be an increase in the confidence of astute buyers possibly fueled by no capital gains tax and record low interest rates.
Listing volumes remain low and this is a contributing factor to the very low sales volumes. Looking specifically at the North Shore market there were 268 sales in June 2019 – the lowest since the 2008 Global Financial Crisis. The graph below depicts North Shore sales volumes since 2006:
Prices remain relatively stable. The North Shore market saw a 3.9% decrease in median price from $1,016,000 in June 2018 to $976,000 in June 2019. There was an increase in median days on the market to 47 in June.
There is a notable increase in first home buyers in the market. We have recorded an increase in investors re-entering the market with the latest change in legislation affecting landlords with the introduction of compulsory insulation in all rental properties from the 1st July, having little effect.
Low listing volumes continue to affect the property cycle with less choice for buyers. Prices continue to remain stable combined with very low interest rates, presenting an opportune time for the astute to transact.