So that’s 25% of 2024 completed already! As the Easter weekend fast approaches, and then school holidays fast on its heels, coupled with a little break to observe Anzac Day, April will be behind us before we know it too.
It’s been a real sprint this year with Easter coming early. As we know January is always a slow start in Real Estate, with the long school summer holidays and Australia Day celebrations to enjoy, the market doesn’t get going until the end of January.
So how was Q1 2024 and what should we expect to see in Q2 of 2024?
So how was Q1 2024 and what should we expect to see in Q2 of 2024?
Let’s start with the highly touted Mortgage Cliff and the expectation of floods of stressed out, financially ruined Vendors desperate to sell sell sell. With the exception of some isolated cases, and as discussed in our year end review last year, it didn’t happen. We did purchase some apartments off market that were under financial pressure and we bought them well. However Primary Residence properties on the Lower north Shore and Northern Beaches of Sydney remain extremely tightly held, and for the most part selling well. With extremely high levels of equity and bulging offset accounts, Vendors are comfortably placed.
Stock levels – These continue to remain low with many Vendors questioning, where am I going to move to? We already know to expect more of the same in Q2. Low stock levels, solid demand and a steadily increasing market. So we have this Chicken and Egg situation remaining;
Should I buy first or Sell First? – This will always remain a personal decision. If you can afford to buy before you sell, then lock in your purchase and sell afterwards. Especially if you believe that the market will continue to increase this year. If you are wanting to sell immediately after buying, then we would suggest that you engage your selling agent or choose as early as possible, have all of your marketing completed to make the process seamless. For me details on this follow this link: https://www.spbuy.com.
Stock levels – These continue to remain low with many Vendors questioning, where am I going to move to? We already know to expect more of the same in Q2. Low stock levels, solid demand and a steadily increasing market. So we have this Chicken and Egg situation remaining;
Should I buy first or Sell First? – This will always remain a personal decision. If you can afford to buy before you sell, then lock in your purchase and sell afterwards. Especially if you believe that the market will continue to increase this year. If you are wanting to sell immediately after buying, then we would suggest that you engage your selling agent or choose as early as possible, have all of your marketing completed to make the process seamless. For me details on this follow this link: https://www.spbuy.com.
If you need to sell before you buy then we highly recommend you organise your finances and arrange bridging finance too. Also, amend your contract of sale to reflect a 3 month settlement period. That way if you are super active and across all properties including the genuine off market listings, you should be able to tie in your purchase settlement date, with your sale. No guarantee, but has proven to be the best strategy.
Current Buyer Attitudes: There were plenty of hands sitting on bums at the start of the year. Buyers wanted to see what everyone else was doing before jumping in. As we’ve progressed throughout Q1 buyers have become increasingly confident. Auction clearance rates are hoovering between 70%-75% which highlights a very healthy market. We see this increasing over the course of Q2.
Cash Rate/Interest Rates – The Next Boom Is Coming!: Interest rate cuts are coming, although the timing is unknown I predict that the first cut will be in August (6th) or September (24th) this year, and once this happens, look out! The financial markets have already fully priced in the first rate cut for September. If correct, and you must sell before buying your next home, then we implore you to ensure that you are not out of the market for too long.
Recent price reductions: Do not be fooled by the recent spate of guide price reductions either. This is simply a case of vendors seeking an unachievable price initially or some selling agents pricing them too high. The seemingly high number of ‘price guide adjustments’ can give the impression that the market is soft or coming back when in reality, it’s just incorrect and opportune pricing from the outset.
Current Buyer Attitudes: There were plenty of hands sitting on bums at the start of the year. Buyers wanted to see what everyone else was doing before jumping in. As we’ve progressed throughout Q1 buyers have become increasingly confident. Auction clearance rates are hoovering between 70%-75% which highlights a very healthy market. We see this increasing over the course of Q2.
Cash Rate/Interest Rates – The Next Boom Is Coming!: Interest rate cuts are coming, although the timing is unknown I predict that the first cut will be in August (6th) or September (24th) this year, and once this happens, look out! The financial markets have already fully priced in the first rate cut for September. If correct, and you must sell before buying your next home, then we implore you to ensure that you are not out of the market for too long.
Recent price reductions: Do not be fooled by the recent spate of guide price reductions either. This is simply a case of vendors seeking an unachievable price initially or some selling agents pricing them too high. The seemingly high number of ‘price guide adjustments’ can give the impression that the market is soft or coming back when in reality, it’s just incorrect and opportune pricing from the outset.
Summary of Q2: We see steady growth for the next 12 weeks with low stock levels, buyer confidence to continue to grow and our local market to perform well. Competition for good quality properties will be high and it’ll be imperative that you are organised, prepared and ready to take action. Our advice would be to not wait for competition to really fuel the market and to act now.
If you would like professional support with your purchase, navigate the complexities of negotiations and transacting a property purchase, to be the first to know about the coming soon listings that we can secure pre-market, then reach out for your personalised, confidential discussion.
Marcus Gould
Director & Senior Buyers Agent
E: marcus@spbuy.com.au
M: 0402 239 660
Sp. Property Buyers.