Overview
INTEREST RATES HOLD STEADY AMID LOW STOCK AND RISING BUYER ENGAGEMENT
As we navigate through the last weeks of winter, the current inventory remains constrained. Limited new listings create advantage for those entering the market attracting significant attention from the expanding buyer pool, seeing sellers achieve favourable outcomes even amid economic uncertainties. Despite the ongoing concerns about inflation and potential interest rate hikes, the Reserve Bank of Australia has provided a measure of stability by announcing that rates will remain on hold this month. This decision offers reassurance to buyers, allowing them to engage in the market with confidence that borrowing costs will not increase in the immediate future.
Local Property Market
July has been favourable for sellers in the Upper North Shore area, as reported by SQM Research, which noted a 4.1% decrease in total property listings compared to June. This reduction in listings has led to a market with less competition, significantly benefiting sellers due to increased buyer interest amidst limited choices.
With total sales listings continuing to remain below demand, there has been a noticeable boost in buyer engagement, as evidenced by an increase in average contract requests. As we anticipate new listings to gradually emerge over the coming weeks, those who choose to launch their properties early are poised to take advantage of a market still starved for inventory, attracting buyers who are eager to secure a home in this competitive landscape.
Sydney Property Market
The Sydney property market has maintained its optimism in July, despite typically quieter winter months influenced by events such as the school holidays. This month showcased stronger-than-expected auction results, with total property listings continuing to lag behind demand and property values still on the rise, despite ongoing concerns about interest rate increases.
Sydney continues to hold the highest median home value among Australian capital cities, at $1,174,867. Property value growth in Sydney has moderated slightly, with dwelling values increasing by 0.3% in July and annual growth recorded at 5.6%, according to CoreLogic. This continued appreciation in property values presents a promising outlook for sellers. Notably, auction results fluctuated throughout July, with preliminary clearance rates dipping to 68.9% in mid-July due to the winter school holidays, then recovering to 76.5% by the end of the month.
Australian Property Market
Nationally, home values increased by 0.5% in July, marking the 18th consecutive month of growth. A notable shift in demand towards more affordable housing options has led to units appreciating more rapidly than houses in most capital cities, reflecting a decrease in borrowing capacity across the board.
Economy Update
The Australian Bureau of Statistics (ABS) reported that the Consumer Price Index (CPI) rose by 3.8% over the 12 months to June, a slight decrease from the May Monthly indicator of 4.0% but higher than the March quarterly indicator of 3.6%.
Notably, the trimmed mean, which excludes volatile items, continued its gradual decline from a December 2022 peak of 6.8% to 3.9%, marking a 0.1% decrease from the March 2024 figure.
While the annual CPI remains slightly above the Reserve Bank of Australia’s (RBA) target range of 2-3%, there is a positive trend in underlying inflation and employment figures remained stable, with the Australian labour force statistics indicating that the unemployment rate held steady at 4.0%, unchanged from May 2024.
Despite ongoing fluctuations in inflation, the RBA has opted to maintain the cash rate at 4.35% this month. This decision is beneficial for mortgage holders, providing stability in borrowing costs amidst economic uncertainties.
The Marshall Group Achievements and Community Involvement
Despite a slower local market throughout July, The Marshall Group continued to demonstrate its market leadership by selling 12 properties, totalling nearly $27 million. This achievement brings our year-to-date total to 104 properties sold, with a cumulative value of $271 million.
We are also thrilled to announce our nomination as a finalist in the 2024 North Shore Local Business Awards. We extend our congratulations to the other finalists and eagerly anticipate celebrating the accomplishments of local small businesses on the presentation night of August 13, 2024.
Our commitment to the community remains strong as we continue to forge meaningful partnerships with sporting clubs, schools, and community groups.
Upcoming events sponsored by The Marshall Group include:
- North Turramurra Public School Trivia Night
Saturday, 17 August
- Ravenswood Foundation Gala Ball 2024
Saturday, 24th August, 6:30 pm – 11:30 pm
Event Details - Trish MS All That Jazz Ball 2024
Saturday, 7th September, 6:00 pm
Event Details
For more information about upcoming events, please visit our event and sponsorship page.
Conclusion
The Marshall Group provides real commitment and real results through our people-focused philosophy. We aim to enhance the value we bring to our clients and community. Whether through financial advantages or keeping you informed with the latest market and local area news, we are dedicated to continually improving our services to maintain our prominence in the local market.
Stay connected with us for continued updates on the latest insights and community initiatives.
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