From the height of the market, where are we now?

Last week, our team had the opportunity to attend a presentation by Core Logic, where we gained valuable insights into the state of Sydney's housing market. One of the key takeaways was the significant rise and subsequent decline in house prices during the pandemic. According to Core Logic, house prices in Sydney surged by 30% from 2020 to 2021, driven by various factors, including increased demand and low-interest rates. However, since then, there has been a 15% drop in prices. Despite this recent decline, the three-year return from 2020 (excluding 2021) shows a positive growth of approximately 15%, which is certainly an encouraging sign for homeowners and investors.

To better understand the market's performance, it's essential to analyse properties that have sold both in 2021 and resold in 2023. The Lower North Shore rarely has two houses the same and as such properties in this area are not easily comparable. Examining such sales can offer valuable insights. One notable example is the sale of 22 Wunda Road in Mosman earlier this year. The property sold for $7,750,000, marking a 5.44% increase from its previous sale in March 2021 for $7,350,000. This demonstrates that homes that required little to no work have performed exceptionally well overall, highlighting the desirability of move-in-ready properties in the current market.

Another interesting case is the recent sale of 15 Bond Street, Mosman. This property was initially purchased in 2021 for $3,285,000 and was sold over the weekend for $3,110,000, indicating a 5.33% decrease. This figure deviates from the widely talked about 15% drop, emphasizing the importance of considering individual property sales and particular areas. Furthermore, it's worth noting that this sale was not forced but rather an opportunity taken by the owner to benefit from the softened market in other areas. 

For those interested in witnessing the market's dynamics firsthand, an intriguing property to watch is 9 Lower Almora Street, Mosman. Recently back on the market with a price guide of $8,300,000, it is noteworthy that this is the same price it was sold for in November 2021. Given this pricing, it is likely that the purchaser of this property will invest in renovations or even consider a full rebuild. The top end of the market has historically shown resilience to prevailing trends, making this property an interesting space to monitor.

There is no doubt the housing market in Sydney has experienced a roller coaster ride since the onset of the pandemic. While there was a significant increase in house prices followed by a decline, the overall three-year return from 2020 shows a positive growth of approximately 15%. However, it is crucial to analyse individual property sales to gain a comprehensive understanding of the market's performance.

As the housing market continues to evolve, it is essential for buyers, sellers, and investors to remain vigilant and informed about these nuances.  If you’d like to know more about the current market or receive an appraisal of your home please feel free to get in touch.