03 August 2023
Monthly Market Matters – July 2023
Our local real estate market has shown promising signs during July, led by an increase in Cunninghams property sales and another increase in home values across Sydney.
At Cunninghams, we continue to lead the Northern Beaches market, selling 36 properties over the month of July, compared to 28 properties sold in July last year. We recorded our biggest market share on record, with us selling 15.1% of all residential sales on the Northern Beaches – which means one in every 6.7 homes was sold by Cunninghams.
To give context, our nearest competitor sold just 16 properties in July and this staggering difference alludes to the connection and confidence our team shows when it comes to achieving the best for our clients. Our results in this winter, low stock market, where we sold over double the properties in half the time than any other agency, demonstrate our commitment to our clients and community.
This success for our clients stems from our core values – being connected, confident, and committed – and our dedication to providing high-quality advice, experience, and results. Selling your most valuable asset requires a team that is market-connected, skill-confident, and client-committed. With more sellers choosing Cunninghams than any other agency, the increase in market share we have seen from Manly to Palm Beach and out to the Forest over the last 12 months is a testament to the sales strategies we implement. In line with our core values, these strategies are executed in an effective and efficient manner, even in transitioning markets.
When it comes to national data, CoreLogic’s national Home Value Index (HVI) rose by 0.7% in July. This is the fifth consecutive month of national recovery, with a total increase of 4.1% since February, following a sharp 9.1% decline from record highs in April 2022. Despite this positive trend, national home values are still 5.3% below the peak in April 2022.
During July, Sydney’s monthly pace of housing value growth decreased from 1.8% in May to 0.9% in July, coinciding with a 9.9% increase in new listings. When it comes to the Northern Beaches, we have seen an actual value increase over the past two quarters of 5.5% and a listings lift of around 10% so well ahead of the Sydney averages. With auctions you may expect that with an increase in stock, bidder registrations would decrease with buyers spread over more properties, however both have trended upwards over the past three weeks – this implies increased market activity and competition. Clearance rates remain consistent and strong, indicating a robust market with a balanced supply-demand dynamic.
Consumer sentiment, closely related to housing activity, may also experience a lift due to the lowest inflation data since September 2021 recorded in the June quarter. With interest rates also on hold in August, we may start to see more buyers enter the market ahead of Spring, including investors. A boost in housing activity is expected, however we may not see a significant market shift until interest rates start to decline, something that is predicted for the end of 2024. Borrowers may feel the impact of rate hikes in the coming months as variable rates follow the cash rate with a lag, and over 800,000 home loans transition from low fixed mortgage rates to variable rates around 6% or higher.
In summary, July 2023 saw positive trends in our local real estate market and beyond with rising sales volumes, consistent interest, and a gradual increase in home values. As a market leader, our team have again outperformed our competitors as well as the market trends, something we are always striving for. Our dedicated approach to data allows us to adapt more quickly to a changing market and in turn, give our clients the very best experience. This underpins our success and is a testament to our core values of being connected, confident, and committed, and while we remain cautiously optimistic, we look forward to busy Spring selling season approaching very soon.
