What a start to 2023; January has been phenomenal – Buyers and renters are back in force

 

Market Overview
It’s only 4 weeks or so into the new year, and already the team at Schwarz are predicting great things for the real estate market for the rest of 2023.

Why? Well, here are two of the key reasons:
– In both the sales and rental market, we’ve just experienced the busiest January we’ve seen in quite a few years;
– Buyers and tenants are definitely back in the market and ready to transact or rent—BUT there is a relatively reduced amount of saleable and rentable stock available in the market.

As always, our team is ready and able to help all of our clients meet their real estate objectives for 2023, whether it be selling, buying or renting.

So, if you want to find out the sales value of your property in the current market, contact our office today to book a complimentary appraisal and take some time to learn more about the Sydney property market.

BUYERS ARE BACK
In January 2023 we enjoyed one of the busiest starts to the year that we’ve experienced in many a year. Our first open inspection of the year attracted on average 7 interested parties and this number continued to rise as the month progressed.

Compared to the fourth quarter last year enquiry levels have increased by 30% across the board. Last year it was clear to us that buyer and seller confidence was steadily returning, but the enquiry and viewing stats now prove this!

You only have to look at some of the recent numbers:
50,887 online listing views
1,039 buyer enquiries
110+ buyers inspected our open inspections—in only 3 weeks!

We at Schwarz know the Sydney market well, we follow and live its ebbs and flows; we look at past cycles but always see the same thing… the Sydney market is on a long-term upward trend! The city has been, is and always will be, a favoured destination for Australians and new comers.

It was clear to us in 2022 that the market was in a transitional stage for much of the year until it began to stabilise in the fourth quarter. For a period, some investors were uncertain about the real estate market. But, now, taking an overview of last year’s trends, many participants are in a better position to make a more informed decision and assess what budget they have to buy or rent and how much they feel they can sell or rent for.

Already 2023 looks like being a positive year for the real estate market in Sydney, and everyone in the team can feel that this year is going to be a great one!

RENTERS ARE BACK TOO
Just as the sale market has seen an upturn in demand, the rental market has followed suit.

We leased the majority of our properties after the first open viewing in January. What’s more, we had an amazingly high average of 5 applications per property, with exceptional demand for properties below $1,000 pm.

Properties are also being leased across Sydney at higher rentals and, therefore, higher yields than last year. Gross rental yields have continued to trend higher, rising from a historic low of 3.21% in February 2022 to 3.85% in January 2023.

The month in numbers:
878 enquiries from tenants
129 applications for tenancies received
26 properties leased
$780.00 average rental p/w

If you want to find out the rental value of your property in the current market to assess your investment returns, call or email us today to book a complimentary appraisal and learn more about the Sydney property market.

What’s in store?
As we said, it’s been a great start to the year. With high demand for both sales and rental properties, we expect to see this trend continuing throughout the quarter.

It will, however, be interesting to see what happens to demand as we approach mid-year when low, fixed interest rates which were at 2% come to an end. One possibility is that we may see more properties coming to the market and evening out this current demand for rentals and sales.

A new year is always a great time to get an updated appraisal of your property so why not. Contact us today for a complimentary market appraisal and property report analysis. You may decide to sell or lease, or even test the market with an off-market sale!

For objective property advice or tips on how best to start marketing your property, or simply to speak to a professional about listing your home on the market with Schwarz, please get in touch with us by email or call (02) 9939 5400.