Welcome to AVVED’s real estate market update for May 2020. The health crisis has calmed down significantly over the last month with limited new cases resulting in restrictions beginning to ease. It is important to remember that despite these positives on the health front, the economy is still only in the very early stages of a significant downturn.
There is now data to back our predicted decline in prices with Sydney house prices going backwards last month for the first time in almost a year. Despite this, prices are currently being kept relatively stable due to a low amount of new properties onto the market combined with an increase in buyer activity.
We have first hand seen a big increase in enquiries with plenty of buyers now returning to the market as we adapt to living in the new world. There is currently a great window to sell before a further decline for the real estate market likely around September when the economic impacts become more severe.
Lets look at the numbers for Winmalee in May. After the big influx of new properties onto the market when the pandemic hit in mid March, a lot of those properties have sold which gives us a much better indication of the price impact locally. We feel Winmalee’s market is down somewhere between 5%-10% since the pandemic impacted and the data on prices definitely backs this up.
8 properties sold in Winmalee in May including our property 6 Sunny Ridge Road. This is a good increase in volume compared with only 3 sales in April. 2 properties haven’t had their price disclosed however the median price of the other 6 properties which have had the price disclosed is $637,500 which is only 2% down on the February median. This is likely to be lower though as the 2 undisclosed properties were advertised for much less than the median. Springwood’s prices were also down a massive 17% in May from February’s median.
7 new properties also came onto the market in May which is more than we were expecting. Winmalee seems to be avoiding the trend seen in the broader market of a slow down of new listings after having consistent new properties onto the market over the last few months.
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