As property prices drop, opportunistic sellers are falling away and homeowners are hesitating to list.This imbalance between buyers and sellers means price falls have not been as sharp recently as they were when interest rates first rose.Sydney’s fastest house price decline in decades has scared home sellers, who were less likely to list their properties for sale in October than the month before.
Ray White data shows the average number of bidders at auction hit 3.7 by the end of October, the highest figure in the past year. AMP Capital chief economist Dr Shane Oliver said even as buyers remained cautious as the Reserve Bank continued to hike rates, owners were hesitant to list. This meant there were not many homes to choose from, and this was helping to moderate price falls.“There was a feeling through the spring selling season you’d see a rise in listings, but we haven’t seen that. That has contributed to the ease in the rate of decline,” Oliver said.
“This property market downturn will wax and wane until we get to the bottom. We’re still at relatively early days of it because we’re yet to see the full impact of higher interest rates. There is still a fair way to go,” he said. “Deals are still going through, but it is a case of lowering [seller] expectations and bringing the buyer to the party.”
His selling agent Matt Carvalho of Ray White Erskineville, Alexandria, Glebe and Surry Hills said the biggest price reductions were when interest rates first increased in May.
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