Eastern suburbs mum’s ‘shock’ after getting millions from real estate recovery

A once nervous eastern suburbs mum has revealed the surprise windfall she netted for her home following an unexpected change in the Sydney property market.

Kim Baker had felt anxious about it for weeks. And when the day of her auction finally came she couldn’t bear to watch it fearing she’d get a “horrible” price.

Those nerves evaporated the moment the hammer dropped on her family home in Chifley at $2.64m, a price she said was a “shock”.

“It was $200,000 more than we wanted,” she said, noting she had been forced by personal circumstances to sell.

The eastern suburbs mum is among a growing number of once anxious home sellers who pocketed big prices in the midst of an earlier than expected recovery in the Sydney housing market.

After falling by record margins last year, Sydney’s median home price has climbed for three consecutive months, with widespread housing shortages and surging demand pressuring buyers to pay more.

Kim Baker, with daughter Hailie, got a big price in Chifley.

Exclusive PropTrack data reveals 452 suburbs – about 75 per cent of the Sydney market – recorded house price rises in the months since January.

Unit price rises were even more extensive, climbing in nearly 86 per cent of the suburbs.

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It comes as ABS data revealed fewer homes were being built in Sydney than in Brisbane, despite having more than twice as many residents – and all at a time when migration into the Harbour City was soaring

Further analysis of search activity on realestate.com.au laid bare the mismatch between supply and demand, with an average of more than 200 home seekers vying for individual listings in some Sydney areas.

Ray White chief economist Nerida Conisbee said the speed of the recent market recovery was “unexpected” and it was largely due to buyers having so few options of available homes to purchase.

Ray White economist Nerida Conisbee said NSW was building too little to accommodate high population growth.

There was also a growing sense that the Reserve Bank was near the end of its current interest rate rise cycle and this was emboldening many buyers to resume property searches, Ms Conisbee said.

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PropTrack economist Angus Moore said the RBA’s decision to leave the cash rate unchanged at its last board meeting would encourage many of the buyers who held off purchasing last year when rates first starting rising.

Adrian Tsavalas, director of real estate agency Adrian William, said numbers at open homes have tripled since about September and “that’s translated into more bidders at auctions”.

Sellers, accustomed to a weaker market, have often been left stunned at the results they’ve got under the hammer.

“I was amazed once (the bidding) went over reserve. We were just overjoyed,” Ms Baker said. “It was a surreal experience filled with emotions.”

Ms Baker added that she had also been surprised at how many people inspected her home in the lead up to her sale. “I didn’t expect that many people to show up,” she said.

“We had 33 groups come through on the first day. We kept getting those high numbers. I was thinking maybe that might die off, but it didn’t happen at all. We moved the auction forward because of all the interest.”

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Her agent, Ray White Touma Group director Roger Wardy, said “little” was for sale in the area and buyers were competing hard for the rare homes that were available.

He added that Ms Baker’s experience was not unique and, apart from the change in market conditions, there was nothing particularly special about her home that would have suggested the higher than expected price.

Originally published as Eastern suburbs mum’s ‘shock’ after getting millions from real estate recovery