The COVID market keeps moving
Predictions of a busier winter have become the reality in the aftermath of eased restrictions at BresicWhitney for both sales and rental properties.
This is the first time ever where our new listing numbers have been higher in June than in May. Attendance has bounced back, but property stock is on the rise too.
An average of 12 people attended each of our opens, back to similar levels as last year, and on par with last month. Two months ago, our new stock was half of what it was in 2019. This month, the flow of new listings were double that of June last year.
With the current market in motion, seasonality out the window, and no one jet setting for mid-year breaks, it remains to be seen how the supply/demand balance will play out.
And with prices slipping 0.8% for the month, Jobkeeper concerns, and mortgage holidays coming to an end, there is a lot to keep an eye on.
We sold 73 properties in June up from 59 in May, and up from 53 in June 2019. Meanwhile, a 22% of our stock sold off-market to pre-qualified BresicWhitney buyers.
It has been tough, but our agents have also doubled down for their clients. When COVID hit, they collaborated on sales, cross-sold between teams, and facilitated each other’s transactions.
Across Sydney, prices are still up 13.3% from June 2019 because of the pre-COVID price rally.
“The downwards pressure on home values has remained mild to-date,” said CoreLogic’s head of research Tim Lawless.
“A variety of factors have helped to protect home values from more significant declines, including persistently low advertised stock levels and significant government stimulus.”
After a 21.5% surge in sales activity through May, CoreLogic’s estimate of home sales in June was up a further 29.5%, adding momentum and spending within local economies.
Our multiple offices continue to bring people from east to west, widening the buyer pool beyond people’s usual web searches. Chris Nunn sold 39 Metropolitan Road, Enmore to an underbidder from a Redfern property. After missing out with Michael Kirk at 121 Marriott Street, Redfern, the buyers made an on-the-spot offer across town.
At 6 Belmore Street, Rozelle one of Adrian Oddi’s listings was sold by Luke Grosvenor who introduced both buyer and underbidder. Selling for $1.2 million, the property was purchased in March last year for $930,000, with the owner since putting a DA approval in place.
More than 100 people turned up to watch an uninhabitable house at 112 Surrey Street, Darlinghurst go under the hammer with Shannan Whitney. 16 buyers registered to bid, 6 were active, and 3 battled to the end. It sold above reserve for $4.621 million.
Other auctions have been hotly contested too. John Yannakis sold above reserve at 78 Bridge Street, Glebe with more than 200 groups inspecting, 6 people registered, and 4 actively bid to $1.383 million. It was busy for Zak Abdallaoui at 68 Cooper Street, Surry Hills where 7 people registered, and 5 bid to $1.81 million.
The rental market has now been reset, as opposed to the transition we’ve been feeling for months. Both tenants and landlords have now recalibrated their expectations around price and value.
With that comes welcome stabilisation for owners, with attendance also growing as home hunters traverse the city in search of better offerings. But still, our teams are holding multiple opens, with a reserved sense of urgency from most onlookers
48 Ridge Street, Surry Hills was one popular home with 25 groups through, yet just 2 applications came in. Another home at 22/15-19 Hutchinson Street, Surry Hills had around 150 people attend. Previously leased at $900pw, and offered for $750pw, it received offers above asking at $805pw.
BresicWhitney leased a massive 133 homes in June, bringing our total to over 360 properties leased since COVID began.
Meanwhile, we’ve found insurance coverage defaults in rent payments are being removed from all coverage renewals. Something to watch.
There is plenty to beware of in this new market.