Vendors and buyers ‘travelling on different tracks’ in new year market

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The New Year - with rate rises and an upcoming election - has buyers more cautious on price, while owners still have expectations at pre-Christmas levels.

A newly renovated three-bedroom, two-bathroom terrace home at 149 Hargrave Street, Paddington, NSW. Sold prior to auction for $4.25 million.The newly renovated terrace home at 149 Hargrave Street in Sydney’s Paddington sold for $4.25 million.Two weeks last year and five weeks this year. We sold this to the renovator-owner last year [for $3.4 million in July].The owners were always at $4.4 million. We had an offer at $4.15 million and the owners said no.

The home sold when the vendors, who had held out for $4.4 million, accepted that the market wouldn’t pay that much.When we appraised it in September-October last year we thought $4.3 million, with a chance $4.4 million was achievable. But it became apparent towards the end of last year we weren’t going to get that. We thought between $4.15 and $4.25 million was the right money.The vendors and buyers are travelling on two different tracks.

a) Likely every week. I think it’ll become more frequent now, right up until the election as buyers are still pretty hesitant to act on anything and owners are still chasing premium prices from last year.

 

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The tide is turning

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