What happened in Sydney's property market last month?

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While the slowdown continues, we're reminded that perspective is everything.

Property prices increased by 25.3% in Sydney in 2021 alone (CoreLogic). Taking a look the current slowdown, we've seen a decline of approximately -3.1% in Sydney over a 5 month period in 2022 (Feb-June 30). When we consider this perspective, property prices would have such a long way to fall before even getting near the property prices we saw in Sydney just last year. 

Taking a look at the June data, we saw the market continue to soften as Sydney property prices slowed their pace of growth by -0.4% as reported by PropTrack's Home Price Index. CoreLogic also reported a decline in property prices of -1.6%. That's a total of -2.8% for the quarter. The reason for the decline is being attributed to rising interest rates and inflation.  

On the supply side, total listings in Sydney and Melbourne are still on the up with total listings increasing by 7-8% last month. CoreLogic says this is likely due to buyers reluctance to purchase existing property on the market. This is supported by the statistics reflecting a  -36.7% decline in property transactions across Sydney this June quarter compared to last year. 

Auction clearance rates across Sydney are sitting at 52.9% week ending 3rd July 2022 according to CoreLogic with a decline in the clearance rate by 24.6% compared to last year.

We're sensing from selling agents there's a hesitancy of vendors to list their properties for sale. The market conditions including reduced buyer activity and winter/school holiday season are likely contributing factors. Unless there is a compelling reason for the vendor to sell, they're more likely to postpone selling and instead, wait to list in stronger market conditions. 

Patience and persistence is the ideal headspace when looking to buy in this market. Similarly to avoid FOMO in a hot market, it's also important now to stick by what's most important to you in a property, and persevering in order to find the right property, not just any property. 

We can see that clearance rates are declining and it is now a buyer's market. The fear of missing out has now turned into the to fear of over paying. See our negotiation tips here to help overcome this negotiation hurdle. 

Rhiannan Jenkins is a property investor, real estate nerd and advocate for independent property advice. She has invested, studied, researched, worked and built a network to be in the position she is in today to help home buyers and property investors confidently purchase their first or next property. She work with first home buyers, new and experienced investors, upgraders and downsizers to help achieve their property purchasing goals. Her role and personal goal is to cut through the noise and be an independent voice for buyers in the real estate industry.

If you want to see more of this property news and other tips and insights from property experts, email rhiannan@hunterjames.com.au to subscribe to Rhiannan’s monthly newsletter.

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Rhiannan Jenkins

A high school Dux and Dean’s scholar at university, Rhiannan has always been a high achiever and with a determined and dedicated mindset, Rhiannan stops at nothing when representing her clients and guiding them to achieve their own property goals.

A local resident of Sydney’s Inner West, Rhiannan’s love and passion for property developed over years of research and investing in property herself. An avid listener, reader and networker of all things property related, Rhiannan turned her obsession of property into her career pursuit, working alongside a few well respected real estate experts, before making her own indelible mark on the industry.

Rhiannan’s years of real estate experience and a successful corporate background in HR, have helped her to to develop deep seated skills in relationship management, influencing and negotiating, that ultimately translates into valuable interpersonal and analytical skills for her and Hunter James clients.