End Financial Year 2020- South Sydney Market Update

What a confusing recession this is turning out to be. Buyers have been back out, with numbers once again at pre-Covid levels. Auction reports have also come in over the weekend with several properties selling hundreds of thousands of dollars over reserve. One of these was a three bedroom apartment overlooking Coogee Beach selling for $4,385,000, which was $1,135,000 over the reserve. 

Auction clearance rates have been strong over the past couple of weeks, holding over 60% which is only 10% away from clearance rates consistent with a rising market which is 70% and over. More significantly these rates were recorded against a much higher volume of auctions compared to a month ago, where it was being argued that the ultra-low stock levels were propping up the clearance rates.

In my opinion if the property market was going to tank, we would not be experiencing this kind of activity. The housing market is fuelled by primarily by confidence rather than stimulus. The economy has been heavily backed by a huge six month stimulus injection, however with the delivery of so much negative press coming in from all directions it is a negative environment and outlook we have been acclimatised to over the last quarter. Given this atmosphere the market is still resilient and performing well, reminding me as I write this, of the Manly Sea Eagles win over Canberra on the weekend after losing Tommy Turbo and Dylan Walker early in the game.

Should there be a correction in the market it may come at a time when higher stock-levels combine with the end of the job-keeper stimulus and banks discontinue the pausing of loan re-payments which will be in October. If this is the case, now would be the optimum time to have a conversation around placing your home on the market should you be deliberating about the best time.