Sydney’s property market correction appears to be over as improving buyer sentiment, auction clearance rates and wider market metrics all point to a recovery underway in 2023.
After ten consecutive months of month-on-month decline in the median house prices nationally, Core Logic recently reported the first month-on-month increase in median house prices across Australian capital cities.
Leading independent real estate auctioneer Clarence White of Menck White Auctioneers believes the data all points to one thing:
“When we triangulate the first ten weeks of weekly clearance rates in Sydney in 2023 (as published by Core Logic) with our own data illustrating average registrations per auction that has run and the recent Core Logic announcement regarding an increase in median house prices nationally, we can now safely say that the Sydney property market has passed the bottom.”
According to Core Logic, the Sydney auction market has posted weekly clearance rates above 70% on 8 out of the last 10 auction weeks in 2023. Menck White Auctioneers internal data shows that we are typically averaging between 4 and 5 registrations per auction that runs and that has been consistent across the first quarter of 2023.
“We are seeing improved registration numbers at auctions across Sydney and improved activity and confidence from buyers on the auction floor. This improved activity has been replicated across a number of geographic areas as well as across most key price points.” Clarence said.
Clarence has a strong prediction for Sydney prices too:
“While historically markets often experience a flat period following a downward correction, I personally believe we will see a bounce not a plateau this time. There is significant dormant demand for housing in Sydney and as confidence in the market grows and is increasingly reported in the media, I believe we will see a return to price growth almost immediately.”
Menck White Auctioneers held 70 auction bookings for the week ending 2nd April, which was the first week of 2023 to breach the 1000 auctions across Sydney volume mark, and 54 of those properties were sold either on auction day or prior to auction.