Normanhurst 2023 YEAR END UPDATE Courtesy of Thomas Merriman Ray White Upper North Shore
In 2023 we saw the continued decline in prices for the first quarter of the year carried over from the end of 2022, spurred by increasing interest rates and stock volume as people tried to catch the end of the COVID boom. However, by the end of March, stock started to tighten up. Buyers with new pre-approvals at the higher rates became comfortable with their new reality, decided to capitalise on lower prices but were fighting against each other for limited stock. This sent the market up again. The middle of the year saw a dramatic spike in property value, catching sellers off guard and leaving well-prepared vendors to capitalise on selling in a low volume market. By the end of the year, with an increase in stock levels and ‘on market’ stock the buyer pool started to thin out, buyers became disenfranchised with the market and pulled back, and the reality of higher interest rates gripped. However, Sydney prices are still at a record high. Some markets in the Upper North Shore have seen a 12 month reduction of 3-5% however have increased in value over a five-year period closer to 50%, showing that the volatile market has averaged up regardless. PEXA released information that rising interest rates had affected homeowners less than first home buyers, which seems obvious. Buyers in the market – selling to buy or leveraging against an investment – typically had much higher deposits and were therefore less likely to be impacted. Lower valued properties had an average deposit of around 16% and higher valued (over $2m) saw average deposits of around 30%. Borrowing increased this year between 10-20% but refinancing has slowed. Of the increased borrowing, owner-occupiers climbed over 6% and investors were more dramatic at approx. 16%. This is a good sign that we will be facing a less erratic market, less dramatic interest rate changes and more predictability as we move into 2024. We believe early 2024 will provide us with a good trading platform and we are confident that buyers will be back for the new year. WELCOME TO YOUR MARKET UPDATE Thomas Merriman 0401 840 859 thomas.merriman@raywhite.com
FAST FACTS NORMANHURST IN 2023 1. $1.3M 40 $1.6M 60 $1.9M 80 $1.0M 20 2019 2020 2021 2022 MEDIAN HOUSE SALE PRICE NUMBER SOLD 2023 3. AVERAGE HIGHEST $1,758,525 $1,920,522 $2,800,000 $3,081,000 AUCTION CLEARANCE RATE (FOR THE LAST 6 MONTHS) 78.3% 4. 1 YEAR V. 5 YEAR GROWTH 5. Source: Pricefinder 2023 ONE YEAR GROWTH FIVE YEAR GROWTH 0.7% 47.7% 2023 2022 77 61 2. NUMBER OF SALES SALE PRICE 2023 2022
HIGHLIGHT SALES BY THOMAS MERRIMAN AND RAY WHITE UPPER NORTH SHORE 29 Normanhurst Road, Normanhurst 24 Nepean Avenue, Normanhurst 49 Hinemoa Avenue, Normanhurst 7 Dunbar Close, Normanhurst 42 Hinemoa Avenue, Normanhurst 56 Osborn Road, Normanhurst 18 Buckingham Avenue, Normanhurst 21 Myrtle Street, Normanhurst 1,100sqm 809sqm 1,277sqm 746sqm 558sqm 799sqm 839sqm 696sqm SOLD $3,081,000 SOLD $2,200,000 SOLD $2,600,000 SOLD $2,180,000 SOLD $2,300,000 SOLD $2,187,000 SOLD $2,295,000 SOLD $1,925,000 5 2 7 4 2 2 4 2 2 4 2 3 5 1 1 4 3 4 5 3 2 3 2 2
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