WHAT’S HAPPENING IN OUR MARKET? The first six months of 2025 has been a period when we have seen all personalities of the real estate market. Some weeks the market has felt like it’s booming, other weeks it’s felt strong at the start of the week and flat by week’s end, and then we have had periods where it’s been like pulling teeth trying to get a buyer to commit to a property. But sitting here at my computer and reflecting on the year so far, I have to say it’s been a reasonably good year. Despite the market fluctuating from week to week, there are enough success stories to conclude that the market has performed at least on average if not slightly better. But it’s mixed and contradictory. Numbers don’t lie, but this year the numbers don’t tell the full story. The reality is the market is flat, and the numbers say that, and in some suburbs the numbers indicate prices are actually dropping. In addition, auction clearance rates - which have been the traditional barometer of the market - have not been particularly good either. Some weeks they sit around 50% and others up to 70%, but mostly around the lower end. But interestingly, homes are selling, and they are selling regularly, even if they are taking a bit longer to sell. And homes selling is the most important metric of all in real estate, despite the many metrics we use. Yes, most of the people selling are not actually getting their dream price, but they are getting good enough prices to sell. They are also getting 50% more than that would have in 2020 and considering most Pymble owners have lived on average in their homes for 16 years, they are generally selling 150% - 200% more than they paid for them. And let’s not forget that most people selling are in most cases buying at the same time, so it’s all relative. Perspective is a wonderful thing in real estate. As we move towards the end of this financial year, it seems to be getting a little easier to sell at better prices and buyers seem a little more willing to commit. Dropping interest rates are slowly filtering through, and there is the prospect of further drops ahead but there is no guarantee of more. In addition, homes that have been sitting on the market for longer periods of time (3 months or more) are getting more attention and starting to sell as the lower number of properties on the market in Winter increases competition. We look to the upcoming Spring selling season (starting shortly after the July school holidays) as being a stronger second half with the potential of further interest rate cuts, coupled with the enthusiasm the market almost always seems to experience as we move into the warmer months. Rowan Lazar 0412 329 789 rowan.lazar@raywhite.com
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