Chapter 1: What are the current trends in the Sydney real estate market?
It's the Real Estate Podcast, brought to you by ANZ Home Loans for financial well-beings. And welcome to another episode of the Real Estate Podcast, available on iHeartRadio every morning, also on Spotify and Apple and wherever you get your podcasts from. Wednesday morning, middle of the working week is back with us. The 14th day for September of 2022.
Actually a very popular day Wednesday for having a look at real estate. If you're out there looking at property today, good luck with that. Now, we mentioned this a couple of months ago, but I think it's worth recapping because of the area of Sydney that we're going to be talking about in just a moment.
And that is that there are 10 suburbs in Greater Sydney and Greater Melbourne where sellers have made... the biggest median profits in Australia. And this information from PropTrack we mentioned a couple of months ago is based on the difference between the original purchase price and the most recent sale price for homes sold between March and July of this year.
Chapter 2: How have property prices changed in Woollahra and Paddington?
Suburbs where sellers made the biggest profits in this period were Seaforth and Double Bay, both, of course, in New South Wales and Sorrento in Victoria. And properties that sold in these locations during this time period achieved a median profit of between $1.5 million and $1.4 million. Not too bad, is it, if you happen to be in those particular areas?
And despite the current market and the correcting market, equity in homes is still going pretty strong, which will continue to drive the real estate market for some time to come. And property prices are still up from the start of the pandemic. So it would really take a massive landslide to get us back to anywhere we were close to 2.5 years ago. Now, I mentioned the top 10. 10 suburbs in Sydney.
One of those suburbs is Wallara and we're going to go there next and talk to Randall.
Chapter 3: What factors are influencing buyer behavior in the current market?
It's your weekday real estate breakfast with news, interviews and predictions every morning on The Real Estate Podcast. Hey, if you're celebrating your birthday today for the 14th of September, have yourself a fantastic Wednesday. Unfortunately, Amy Winehouse is no longer with us. She And also on the birthday calls this morning, Sam Neill, the actor. He's getting up a bit.
Sam is turning 74 today. And from the history books, it was on this day back in 2000 that Microsoft launches Window ME. If you're trying to figure out what ME is, it stood for Millennium Edition. and it was the last of the operating systems of the Windows 9X series.
Chapter 4: How is the luxury property market performing in Woollahra?
I hope that makes more sense to you because I am not a Microsoft person at all. Apple all the way for me. It's your real estate podcast for breakfast. It's the main centre forecast with PRD, selling smarter every day. And let's do the weather around Australia on this Wednesday morning. First, we go to Sydney. Good morning to you. Expecting a partly cloudy day.
Should be mainly dry with 18 degrees. In Melbourne, it's a game of two halves.
Chapter 5: What impact does buyer equity have on real estate transactions?
A sunny morning and then expect late showers. The temperature is reasonably warm with 19 degrees. In Brisbane, expecting partly cloudy skies, but it should be mainly dry with 23. And in Perth today, expecting the showers and 18 as your forecast high. We talk with leading property commentators with analysis, predictions, forecasts and what's trending every morning from 6.30.
Well, let's right now go to Willara and Paddington. We are catching up with Randall Kemp there. He is the director of Ray White Willara Paddington and a very good morning to you. Randall, welcome to the Real Estate Breakfast. Good morning, Craig.
Chapter 6: How does the spring property market compare to previous years?
Thank you very much for having me. You're in a really popular, a very desirable area. Tell us a little bit about what's been happening there, perhaps over the last three months. Yeah, sure, Craig. So obviously we are in a very affluent area, you know, only moments to the city and also the beaches, which we cover both markets here at Ray White Wallara Paddington.
But we've seen a bit of a change in the market over the last couple of months. The last couple of years, we've seen prices increase over 20%. But we are seeing a big difference in the markets depending on price. So we sell a lot of stuff in that kind of $2 to $4 million range, sort of smaller terrace homes.
We still are seeing a lot of buyers in the market, but we are seeing that those buyers are very cautious.
Chapter 7: What role does migration play in the Paddington real estate market?
They're on the back foot. They're finding it hard to sort of pull the trigger, being obviously scared about interest rates and whatnot.
However, in the markets where we're selling in the higher end, probably more towards that sort of $6 million to $12 million sort of price bracket, we're still seeing really good, strong buyer activity, and they're not as gun-shy and not so nervous about what's going on with interest rates.
Yeah, and I guess the reason for that probably is because they're quite established in terms of their loans. Some are not even carrying loans, so that all sort of points in the positive margin between that 6 to 12 that you talk about. I think so. And I think a lot of those buyers are also upsizing buyers. They have seen huge growth, as I mentioned before, in their current properties.
So they might have bought for $2 million and the property might have doubled up to $4 million. They've got close to $3 million of equity in that home.
Chapter 8: What predictions can be made for the Sydney real estate market by Christmas?
They're putting that into the next home, which the banks are still valuing and seeing value in properties probably similar to pre-pandemic prices. As I said, it sort of went up 20 to 30%. A lot of that has come back out of the market for that lower end stuff, but they're still sitting there with good equity in their homes and being able to put that into the next property.
So over the last couple of weeks we've been talking about this spring, whether the spring is going to be a property bust or whether there is going to be a real bounce. Interesting that you're talking about that two to four and there is still a little bit of fence sitting even though we are into May by some people just holding off. It's pretty similar all across the board.
In those price ranges, we're still seeing the same numbers come through the homes, which is interesting because you'd think that there's still a lot of active buyers in the markets, which they are. Speaking to mortgage brokers, they're saying that they're seeing record amounts of people coming to get a mortgage.
you know finance approval to buy so there's still a lot of buyers in the marketplace but their sentiment is they are a little scared of you know overpaying rather than sort of scared of missing out which i know has been a bit of a cliche saying in the market lately but it's very true There still is a lot of buyers there.
The thing that's keeping our market very sort of buoyant in the way of transaction is that they just don't have the choice. There's not a lot of properties on the market. We've seen times when there's been a big influx of stock come to market, especially in Paddington, where there's a lot of the same thing, a lot of terrace houses. And you do pretty quickly see a reduction in the prices.
Although prices have come back a little bit due to people fence sitting, they haven't dropped nearly at the rate that everyone probably thought that they would because the stocks just not come to market. So people are just choosing to hold and not sell rather than, you know, desperately sort of putting their properties on the market and selling for any price.
And what about the migration, Randall? What are you seeing at the moment in terms of people coming into the east, into your areas, Paddington, Willara, et cetera? Are you feeling that at the moment? Seeing huge numbers of people that were searching in the Willara, Paddington area have spread their search out. So a lot of them go to the sort of inner west areas.
you know, even over to the North Shore, further up the North Shore to get more value for money, get more house for their dollar, whatever it is. We are starting to see a lot of those types of buyers come back into Willara Paddington. So they might have spread their search a little bit and now they've sort of refined it back to Willara Paddington.
I was just dealing with one buyer who's been looking for two years and she told me she's bid on more than 10 properties and now she's put in an offer on a property that we've got in Willara and it looks like she's going to secure that property after a sort of a two-year search. And what about auctions? Now, you know, you do get a lot of commentators saying, oh, the auctions, they're not working.
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