Overview
As we send out our end of Financial Year property market update, we aim to reassure buyers and sellers alike. Highlighting the consistent growth in CoreLogic’s property value data for May (+0.6%) and June (+0.5%) could ease buyers’ concerns and remind them of the long-term gains.
For potential sellers, it’s a prime opportunity to enter the market before the spring rush.
The Marshall Group agents have successfully sold 182 properties during the 2023-2024 financial year, totalling almost half a billion dollars.
By assisting 364 families in achieving their property goals, our team engaged with over 15,000 local buyers. With an average of 37.1 days on the market, our focus is on a collaborative and results-driven property sale strategy. We meticulously manage each sale to ensure the best possible outcomes for our clients, prioritising quality over speed.
Local Property Market
The Upper North Shore property market remains resilient despite fluctuations in buyer activity. The King’s Birthday Public Holiday weekend saw a spike in buyer engagement, followed by a slight dip, and another spike before the winter school holidays. Overall, buyer engagement remains strong across available listings due to a continuing lack of supply. In the Upper North Shore Ku-ring-gai suburbs, available houses dropped by 18% throughout June.
This balanced market is beneficial for both sellers and buyers, making now a great time to list and sell property in the local area, as buyer demand remains strong and long-term gains are still extremely appealing. The Marshall Group’s market share of available listings across the Upper North Shore Ku-ring-gai suburbs remains around 9%.
Sydney Property Market
Throughout June, auction volumes fluctuated but remained lower than the same time last year. Preliminary clearance rates stayed steadily above 70%, according to CoreLogic. Property values experienced growth of 0.5%, slightly less than May’s 0.6%, but still on track to see Sydney property values double within 10 years if value growth remains around 0.58% per month. Total property listings in Sydney remain lower than buyer demand, sustaining market stability and value growth despite ongoing economic challenges.
Australian Property Market
CoreLogic’s Home Value Index increased by 0.7% in June, marking the 17th consecutive month of growth. This trend reinforces the sustained upward trajectory in property values nationwide, and similar to the Sydney market, is primarily fuelled by tight supply across the country.
Economy Update
Economic challenges continue to influence the property market in Australia. Key factors include inflation (CPI) and unemployment, which affect the RBA cash rate (interest rates). These, in turn, drive up the cost of living, impact buyer borrowing capacity, and affect seller confidence. Although these factors have steadied compared to the previous financial year, some apprehension remains, especially with media speculation about further interest rate rises ahead.
However, it is important to remember that while monthly CPI figures can show volatility, the quarterly CPI remains the principal measure of household inflation. The monthly Consumer Price Index (CPI) indicator rose to 4.0% in the 12 months to May 2024, up from 3.6% in April. The quarterly CPI has been steadily declining from its peak of 7.8% in December 2022 to 3.6% in March 2024. This measure provides a more stable and reliable indicator of inflation trends over time, less influenced by seasonal trends. Updated quarterly figures are expected on 31 July, with the next Reserve Bank of Australia (RBA) announcement on 6 August.
Michelle Marquardt, ABS Head of Prices Statistics, said: “CPI inflation is often impacted by items with volatile price changes like automotive fuel, fruit and vegetables, and holiday travel. It can be helpful to exclude these items from the headline CPI to provide a view of underlying inflation, which was 4.0 per cent in May, down from 4.1 per cent in April.”
The Marshall Group Achievements and Announcements
The Marshall Group successfully helped 30 families achieve their property goals in June, with an auction clearance rate of 75%. Our average days on market extended to 53.7 as we focus on exceptional results, guiding our sale strategy based on results rather than prematurely forcing owners to accept the first offer. While history shows that the first offer can often be the best, we work closely with our clients to navigate these decisions. Even in a less frenzied market, the right strategy and collaboration often lead to exceptional results for all families we assist.
Thank you to everyone who voted in the 2024 North Shore Local Business Awards for Outstanding Real Estate Agency. Winners will be announced on the 13th August.
Community Involvement
We are proud to support various community events, including the Northern Tigers Football Club Trivia Night in June. This marvellous event saw our Managing Director auction off all items above their reserves in a fundraising effort to help superstar footballers achieve their dreams representing Northern Sydney. Upcoming events include the Ravenswood Foundation Gala Ball and the Trish Foundation Ball. Visit our sponsorship page for more details.
Conclusion
As we navigate through 2024, The Marshall Group remains committed to supporting our clients and community. With the economy stabilising and property values growing sustainably, now is an opportune time to explore your property options. Contact us today to discover how we can help you achieve your property goals.