Mosman and the Lower North Shore in Sydney are characterised by glistening water, stunning beaches and lush greenery with Mosman being the waterfront darling of the Lower North Shore. From The Spit to Balmoral you will find many coves and peninsulas along with the waterfront residents and you will be forever surrounded by breathtaking views.
You will never be short of choice for a beautiful walking track, picnic location, café, restaurant or Friday drinks spot as Mosman and the Lower North Shore has so much to offer. The best way to get around is by car, ferry or bus which can connect you to neighbouring suburbs.
Current Housing Values:
Australian housing values were 1.0% higher in December, slowing from a 1.3% rise in November, continuing the softening trend in the monthly growth rate that has been evident since the national index moved through a cyclical high of 2.8% growth in March 2021. Momentum has slowed quite sharply in Melbourne and Sydney dwelling markets, with both cities recording the softest monthly reading since October 2020.
The slowing trend in Sydney and Melbourne can be explained by a bigger deposit hurdle caused by higher housing prices alongside low income growth, as well as a recent surge in advertised inventory levels and weak demographic trends.
Nationally, the number of new listings added to the Australian housing market through December was 21.4% above the five-year average, demonstrating strong vendor confidence amidst quick selling times and high auction clearance rates. As new listings surged higher through spring and early summer, buyers have benefitted from more choice and reduced urgency. This confidence has not been universal, with listings trends varying from city to city. Melbourne was the only city to finish the year with inventory levels above the five-year average, while Sydney listings were only 3.9% below average.
Strong housing demand has been another factor driving housing prices higher. While stock levels have generally been low, the total number of home sales in 2021 was approximately 40% above the decade average.
What’s ahead in 2022:
2021 has been an unprecedented year for Australian housing markets, but 2022 is likely to see a further easing in the pace of capital gains.
The number of home sales reached new record highs against a backdrop of below average listings and stalled overseas migration. The large majority of housing demand has originated from domestic sources, fueled by record low mortgage rates and an accumulation of pent-up demand from prior years, when housing turnover reached record lows.
Sellers have held the upper hand at the negotiation table but buyers are starting to regain some leverage. With demand outweighing advertised supply, vendors have been empowered. Nationally, homes were selling in 23 days early in 2021 with minimal negotiation on advertised prices, auction clearance rates were holding in the high 70% to early 80% range across the major auction markets and buyers were often experiencing a nasty case of FOMO.
The tides have started to turn however, as new listings increased in the later part of the year. The average time on market is beginning to increase, while auction clearance rates have trended down. The combined capital cities clearance rate hit a record high 83.2% for the week ending October 3rd as COVID restrictions eased across the major capitals, but averaged just 63.8% through December.
Although there are some headwinds building for the housing market, we expect national housing values will continue to rise in the short term. Even if interest rates rise earlier than expected, it is likely to be a gradual process. The cost of debt is likely to remain well below long term averages, continuing to support housing demand for an extended period of time.
Talk to Simon today to see what this means for you. Call Simon on 0474 773 034.