Sydney’s property market is facing a spring slump, with buyer activity falling sharply across parts of the city.
Homes are taking longer to sell, auction clearance rates are down and some open homes are attracting barely any buyers.
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The Central Coast, South West, Parramatta, Baulkham Hills and Hawkesbury areas are recording some of the weakest auction results, with fewer than 40 per cent of properties selling under the hammer.
And in some suburbs, buyer interest is even weaker.
In August, open homes in Barangaroo, Putney, Oakville, The Ponds and Auburn attracted fewer than one person on average.
“Numbers are certainly down compared to the same time last year. So on average we’re seeing around two people per open home. This time last year it was about four people.” Ray White chief economist Nerida Conisbee said.
It marks a stark change from last spring, when rising house prices and stronger clearance rates had buyers out in force. Now, caution around interest rates and property prices is keeping many on the sidelines.
“This is probably going to be the toughest spring in several years,” Cotality’s Tim Lawless said.
But for buyers who are ready to act, the softer conditions could present an opportunity.
“If you find the right house, just obviously make an offer and try and buy at the level that you’re happy with,” Ray White Phillips & Co’s Alex Phillips said.
“If not, wait a little bit longer – but don’t think you’re going to pick the bottom of the market.”
Named by industry website Real Estate Business as Australia’s most successful real estate agent for the past decade, Alex Phillips believes prices won’t dip significantly.
“I think we’ve seen about a 10 to 15 per cent correction across most of the markets we work in. So buyers are now starting to see good value. And I don’t think that’s going to change anymore. That’s a pretty big shift downwards.”
Experts say confidence is missing among prospective buyers but higher stock levels could give buyers more choice and greater negotiating power.
“The missing piece of the puzzle in the housing market right now is simply confidence,” Lawless said.
“For buyers, it’s a great opportunity to take advantage of the higher stock levels and the fact that negotiation is clearly on their side.”
