‘Downward pressure’: Sydney suburbs where home owners are selling now

Sydney home owners are deciding to sell their properties at greater rates this spring compared with normal, offering buyers more choice and putting downward pressure on prices.

There were 13.7 per cent more homes for sale in Sydney in October than the five-year average, based on CoreLogic data.

The northern beaches have seen a great uptick in new and total listing volumes this spring, compared with last year and the five-year average.Credit: Domain

Listings in some areas are much higher. Baulkham Hills and Hawkesbury recorded a 37.1 per cent increase, and there were jumps of at least 19 per cent across the northern beaches, Sutherland, Blacktown and the Central Coast.

Sydney house prices fell 0.1 per cent last month for the first time in almost two years amid high borrowing costs, affordability pressures and above-average listing numbers.

CoreLogic head of Australian research Eliza Owen said when total listing volumes are higher than the historical average, it can affect price.

“More choice allows buyers to leverage listings to drive asking prices down, and that puts downward pressure on the overall value of housing stock,” Owen said.

Owen believes prices will have a shallow decline, with a lot depending on how consumers react to reduced interest rates.

The Reserve Bank kept the official cash rate at 4.35 per cent on Tuesday, 12 months since it last lifted. No movement is expected until at least February, and possibly later.

“A reduction could buoy the market, or if interest rate expectations have already been priced into purchases, we might continue to see a bit of a downturn,” she said.

Owen said buyers may drop out of the market due to cost-of-living pressures and borrowing capacity, or look outside of Sydney. Sydney’s median house value is $1,471,892 on CoreLogic data.

Owen said the uplift in total listings compared with last year and the five-year average reflects a softening of the market, particularly at the high end. “Presumably properties are just not selling as quickly as the rate at which they’re coming to market.”

The northern beaches recorded an 18.6 per cent increase in total listings year-on-year and a 21.1 per cent rise in total listings compared with the five-year average.

There were also jumps in total listings volume compared with last year in Sutherland (28.5 per cent), Baulkham Hills and Hawkesbury (19.5 per cent) and Blacktown (15.8 per cent). Each of these regions is at least 25 per cent higher than the five-year average.

Owen said vendors in Sutherland, Baulkham Hills and Hawkesbury may be downsizing or selling due to serviceability costs, while the Hills district had seen an increase in developments over recent years.

Westpac senior economist Matthew Hassan said Sydney’s auction clearance rate of 60 per cent indicates a softening of the market.Credit: Rhett Wyman

Westpac senior economist Matthew Hassan said buyers in the northern beaches might be fighting harder for affordability, while construction could be driving up listing volumes.

“There could be a rise in Parramatta and Ryde with duplexes and apartments, and there may be some distressed selling in Blacktown,” he said.

Hassan said auction clearance rates indicate a softening of the market. Sydney’s clearance rate is 60 per cent, as of November 6, on Domain data.

“Once you drop below 60 per cent, you tend to see prices slip lower,” he said.

OH Property Group buyers’ agent Henny Stier said sellers have had to adjust their price expectations.

“Buyers are picky and price-sensitive,” Stier said. “Often if the vendor isn’t playing ball, buyers will move on to the next. Sellers who don’t need to sell are not budging on price, and those properties get passed in.”

Stier said some buyers no longer have to suburb-hop. “Buyers can go back to their first-choice suburb they were priced out of, or go for the better street, as they’re now within reach.”

PK Property’s managing director and buyers’ agent Peter Kelaher described the northern beaches as a patchy market.

James and Hilary Baldwin are selling their home in Collaroy Plateau.Credit: Wolter Peeters

“The stock that’s moving strongly is the $2.2 million to $3.5 million range. When you get past $4 million, the market softens, and when you get past $6 million, it’s very soft,” he said.

James and Hilary Baldwin have listed their five-bedroom home of a decade in Collaroy Plateau and hope to downsize.

Although they have already been fielding interest from buyers, they think it will still be expensive to buy back in.

“It needs a family to love it as much as we do. Downsizing will allow us the money to travel,” Hilary said.

The couple rented a Narrabeen property for four years before purchasing the home 10 years ago.

“Downsizing in Sydney is still going to be expensive so we are considering all regions,” Hilary said.

James said they have been following what homes in the suburb have sold for. Their agent said the home’s unique A-frame build makes it difficult to price.

The couple have held open home inspections ahead of their November auction with several contracts issued.

“It’s been a mix of families, with some coming from the north shore and others further afield.”