Sydney suburbs seeing homeowners sell under pressure,
Sydney homeowners are choosing to sell their properties at a higher rate this spring, compared to previous years.
This surge in listings is providing buyers with more options, which is contributing to downward pressure on property prices.
According to CoreLogic data, there were 13.7 per cent more homes for sale in Sydney in October than the five-year average.
In certain areas, the increase in listings has been even more significant. For instance, Baulkham Hills and Hawkesbury saw a 37.1 per cent rise.
Additionally, listings in other areas, such as the northern beaches, Sutherland, Blacktown, and the Central Coast, jumped by at least 19 per cent.
This growing supply of properties is starting to have an impact on Sydney’s housing market.
In fact, Sydney house prices dropped by 0.1 per cent last month, marking the first decline in almost two years.
The price drop is mainly attributed to high borrowing costs, affordability concerns, and the increased number of listings on the market.
CoreLogic’s head of Australian research, Eliza Owen, explained that higher-than-usual listing volumes can influence housing prices.
“When there are more listings, buyers can use this larger selection to negotiate prices down,” Owen said.
As a result, the overall value of housing stock is under downward pressure, which is impacting the broader market.
| Region | Year-on-year change | Change from five-year average |
|---|---|---|
| Central Coast | 18.4% | 19.5% |
| Baulkham Hills and Hawkesbury | 19.5% | 37.1% |
| Blacktown | 15.8% | 25.4% |
| City and Inner South | −2.2% | 9.4% |
| Eastern Suburbs | 12.1% | 8.1% |
| Inner South West | 4.3% | 3.7% |
| Inner West | 10.9% | 10.5% |
| North Sydney and Hornsby | 3.0% | 9.9% |
| Northern Beaches | 18.6% | 21.1% |
| Outer South West | 9.7% | 6.6% |
| Outer West and Blue Mountains | 6.2% | 10.1% |
| Parramatta | −2.9% | 9.1% |
| Ryde | −1.0% | 13.0% |
| South West | 1.8% | 6.7% |
| Sutherland | 28.5% | 31.2% |
Owen believes that house prices are likely to experience a modest decline, with much depending on consumer reactions to lower interest rates.
The Reserve Bank decided to keep the official cash rate at 4.35 per cent on Tuesday, marking 12 months since the last increase.
No changes to the cash rate are expected until at least February, and possibly even further beyond that point.
Owen explained that a rate reduction could potentially stimulate the market, but this depends on existing buyer expectations.
“If interest rate cuts have already been factored into current property prices, we might still see a slight downturn,” she said.
Moreover, Owen noted that some buyers may be priced out of the Sydney market due to high costs and borrowing limits.
Alternatively, these buyers may consider purchasing homes outside of Sydney, where property prices may be more affordable.
As of CoreLogic data, the median house value in Sydney stands at $1,471,892, which could continue to deter some buyers.
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Owen stated that the increase in total listings compared to last year and the five-year average reflects a market softening.
This trend is particularly noticeable at the high end of the market, where properties seem to be taking longer to sell.
“Presumably, properties are not selling as quickly as they are being listed, which indicates a slowdown,” Owen explained.
In the northern beaches, listings have increased by 18.6 per cent year-on-year, and by 21.1 per cent compared to the five-year average.
Other areas also saw notable increases in total listings compared to last year. For example, Sutherland saw a 28.5 per cent rise.
Baulkham Hills and Hawkesbury experienced a 19.5 per cent increase, while Blacktown saw a 15.8 per cent jump in listings.
Each of these regions is at least 25 per cent above the five-year average in terms of total listings.
Owen suggested that vendors in places like Sutherland, Baulkham Hills, and Hawkesbury may be downsizing or selling due to rising costs.
Additionally, the Hills district has seen an increase in developments over recent years, which could be contributing to more listings.
Westpac senior economist Matthew Hassan believes buyers in the northern beaches might face more competition as affordability becomes a concern.
Meanwhile, increased construction in the area could be driving up listing volumes, adding to the market’s overall supply.
Hassan also predicted potential rises in listings in Parramatta and Ryde, where duplexes and apartments could be more common.
He further mentioned that there could be some distressed selling in Blacktown as the market continues to soften.
Hassan pointed to auction clearance rates as an indicator of market conditions, noting that Sydney’s clearance rate is currently 60 per cent.
“Once the clearance rate drops below 60 per cent, you generally see prices continue to slip,” he explained.
Henny Stier, a buyers’ agent at OH Property Group, noted that sellers have had to adjust their price expectations.
“Buyers are becoming more selective and price-sensitive. If vendors aren’t flexible, buyers simply move on to the next property,” Stier said.
She added that sellers who don’t need to sell are not willing to budge on their prices, which leads to properties being passed in.
Stier observed that some buyers are no longer forced to look outside their preferred suburb due to more affordable options.
“Buyers can now return to their first-choice suburb or target a better street, as prices have become more accessible,” she noted.
Peter Kelaher, managing director of PK Property, described the northern beaches market as “patchy” with varying conditions across different areas.
“The properties that are selling quickly are in the $2.2 million to $3.5 million range,” he said.
“However, once you move past $4 million, the market begins to soften, and it becomes even slower past $6 million.”
James and Hilary Baldwin have put their five-bedroom home in Collaroy Plateau on the market and hope to downsize.
Although they’ve already received interest from potential buyers, they believe it will still be expensive to buy again in Sydney.
“It needs a family to love it as much as we do,” Hilary explained. “Downsizing will give us the funds to travel.”
The couple rented a property in Narrabeen for four years before purchasing their current home a decade ago.
“Even though downsizing in Sydney is still going to be expensive, we are considering options in all regions,” Hilary said.
James mentioned that they’ve been closely monitoring the sales prices of homes in their suburb to stay informed.
Their agent noted that the home’s unique A-frame design makes it difficult to accurately price in the current market.
The couple has hosted open home inspections in preparation for their November auction, and several contracts have already been issued.
“It’s been a mix of families showing interest, with some coming from the north shore and others from further away,” they said.
