McGrath's recent ‘Super Saturday’ saw 25 per cent of the network's properties scheduled for auction selling prior.
Last year Sydney experienced unusually low stock levels as home owners were reluctant to sell before buying in a moving market. With a return this year to more normal market conditions and higher listing volumes, we are finding that buyer sentiment is increasingly positive.
However with higher listing volumes, retaining buyer interest over a typical four-week campaign can be a challenge for sellers. The upsurge in listings has given buyers more choice, allowing them to be more selective with added bargaining power. Buyers are now more confident to negotiate and make pre-auction offers, often within the first week of a campaign.
As a result, vendors are increasingly choosing to sell prior in order to secure the best possible price. This was clearly demonstrated on the recent ‘Super Saturday’ (24 March) with 25 per cent of McGrath properties across the network scheduled for auction selling prior. This is in stark contrast to previous years when the market was tighter and sellers would wait until auction to achieve the maximum sale price. Last year we would often see five or more bidders at auction, but now it’s often less than three competing.
However sellers who are prepared to meet the market can still achieve good results with some properties still selling above reserve. The latest CoreLogic Hedonic Home Value Index shows that the rate of decline for Sydney dwellings eased over March with dwelling values down -0.3%, compared to -0.9% in January and -0.6% in February. According to the report, if this downwards trend continues, the Sydney housing market may have already moved through its peak rate of decline, which is positive news for sellers.
For buyers, my best tip on how to get ahead in this current market is to place themselves in an unconditional position to proceed with a pre-auction offer. Ensure all due diligence is complete, for example building and pest reports, pre-approved finances and having a solicitor proof the contract of sale.
On the whole I feel that it’s now a healthier and more sustainable market for buyers and sellers alike. While the market is taking a breather over the school holiday period, I expect to see a surge of new stock on the market from late April.
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