Sydney sellers cross finish line first

Selling-your-home-Sydneys-market-could-favour-you-_157_6007894_0_14101792_300When you are buying or selling property in Sydney, there are a few things to be aware of. With house prices ever-rising and investment interest soaring, it can sometimes be difficult to keep on top of the latest developments in the housing market. One important thing to keep in mind, however, is the condition of the market.

Understanding whether the property sector is tilting towards the buyer or the seller can provide a useful guide, particularly when you are deciding to put your property up for sale. While a buyer’s market can lend prospective purchasers a more powerful hand at the negotiating table, conditions that favour sellers take some of this influence away – and you, as the vendor, might be able to get your preferred sale price.

Is Sydney a buyer’s or seller’s market?

The latest Commonwealth Bank-CoreLogic Home Buyers Index for January sheds some light on the property market’s position across the country. The Australian market as a whole was largely balanced, with a number of markets following suit. Both Adelaide and Perth were leaning towards neither vendors nor purchasers over the three months to January, while Brisbane, Hobart and Darwin shifted the onus back onto the buyer.

On the other hand, the results indicate that Sydney’s housing sector in particular is biased heavily towards those selling their property, which could give homeowners across the city something to relish. Melbourne was the only other seller’s market out of the capital cities, though it’s position paled in comparison to the Harbour City’s. The index labelled the Sydney an extreme sellers market, indicating that buyers could have a bit of trouble negotiating prices down.

In fact, the only market in the Sydney area that did not favour sellers entirely was the Gosford-Wyong region – but this location still offered some benefit with balanced conditions. This result indicates that demand for property is far outstripping the number of properties listed for sale. Not only does this result in rapidly growing house prices, but buyers have substantially less bargaining power. Those on the hunt for a home are likely competing with a wide pool of potential buyers, which gives the vendor greater say over the final price.

This is great news if your interested in selling your home, but buyers might require a bit of help through the process if they want to settle on a reasonable price. Your local real estate agent can help you source a property that fits your financial situation.

Auction sales boom

The Commonwealth Bank-CoreLogic report did note that conditions have become slightly more favourable for buyers over three months to January, but overall homes are selling quickly and for good prices. Further CoreLogic research released on March 16 revealed there were 3.4 per cent more house sales in Sydney in 2014 than the previous year, and it looks like a growing number of these could be by auction.

CoreLogic RP Data auction expert Robert Larocca has uncovered that 30.2 per cent of sales in 2014 were by auction, growing from 21.8 per cent in 2013 – and this is more than double the 14.1 per cent proportion back in 2012. In the week ending March 29 alone, there are 1,343 auctions predicted compared to 1,123 in the previous week. With the property market skewed so dramatically towards vendors, it’s it’s not hard to see why auctions are growing in popularity.

Auctions can create an incredibly competitive environment where eager buyers need to edge out other interested parties with higher bids. It can sometimes be a risky process, but with so many people scrambling to get a piece of the Sydney property market, it’s likely the vendors are taking advantage of soaring demand to get quick and profitable results.

Leave a Reply

Your email address will not be published. Required fields are marked *