Recently I’ve been talking with a lot of homeowners who have been calling me to ask about how property prices are faring in this unusual time. Some are more aware of the market conditions than others, yet most are surprised to hear the magnitude of the increase in prices in the Upper Northern Beaches.
If you take for example Avalon Beach, it has had an increase of 62% in the median house price over the last 12 months. Interestingly, if we look at the last five years, or since August 2016, the median house price increased 95% from $1.53 million to $2.96 million. This tells us that the majority of the market growth, or near to two-thirds of it, has been in the last 12 months. (According to CoreLogic RPData).
If you are a local homeowner, this may mean that if you purchased a property around this time last year for $1.8m, today your property could be worth closer to $2.9m.
Here is a look at the change in median values across the suburbs of the Upper Northern Beaches:
Median house value
|Median house value
|Change||Median Unit value
|Median Unit Value
Obviously, the increasing house prices are great for homeowners but the dilemma that comes alongside this is that it can be a very anxious time for buyers. With stock not abundantly available right now, lack of supply and huge demand is making it tricky locals wanting to make a sideways move or purchase for the first time. Typically people who are selling at the moment are selling through forced circumstances such as deceased estates and divorce, or they are relocating out of the area to make a significant lifestyle change or work move.
What we are not seeing is a lot of movement from local homeowners to an upsize or downsize, as the lack of stock is making people cautious. We understand this, and we are here to help. If you are looking to make an upsize or a downsize there are solutions that we are successfully deploying for local homeowners. A positive is that although we are seeing some sellers holding back in the current climate, Cunninghams have conducted 56 appraisals last week alone and we are expecting momentum to resurge during Spring to produce a larger supply of properties for sale.
Looking back on a few lockdowns now, one pattern that has emerged after restrictions are lifted, is that soon after they subside there is a jump in buyer activity and an increase in prices. Even with all that we are dealing with in this current climate, sale prices, days on market and buyer demand are still clearly indicating the local property market remains very strong.
We understand this is an anxious time for some people, and in anxious times certainty is what makes the difference. We know sellers and buyers alike are hungry for certainty, and certainty is what we aim to bring to the process of selling your property.
We also look forward to welcoming you into our new Cunninghams Avalon Beach office set to be open early September.
If you’d like to track the value of your home, compare recent sales and find out how much your property is worth in the current market, you can get your free estimate here.