FEATURE INTERVIEWS

Spring property market heats up as auctions bounce back and vendors get realistic

Chief Auctioneer and owner of auctionWORKS, Jesse Davidson, says the slow winter is behind us, with spring delivering a clear shift in market sentiment as auctions pick up and buyers re-engage.

Chief Auctioneer and owner of auctionWORKS, Jesse Davidson, says it was a slow winter for many agents, but fast forward to spring, and the market mood has shifted.

โ€œAugust really picked up,โ€ Jesse says. 

โ€œItโ€™s not just auction numbers, itโ€™s sentiment. 

โ€œWhether itโ€™s the rate pause or just people sensing weโ€™ve hit the bottom of the interest rate cycle, buyers and sellers are starting to re-engage.โ€

Luxury leads, middle slows

According to Jesse, different segments of the market across Sydney are performing in dramatically different ways.

โ€œThe top end of town is flying,โ€ he says. 

โ€œNot just on price, but registrations. Weโ€™re getting five or six registered bidders on high-end homes, which is an excellent sign.โ€

By contrast, the middle tier, those properties in the $2 to $3 million range, has been โ€œthe toughest,โ€ though this varies suburb to suburb. In tightly held areas like Mosman, that price range still performs due to a lack of stock.

Interestingly, the lower end of the market is holding steady, and Western Sydney is also starting to see signs of renewed activity. 

Commercial auctions, too, are proving resilient, especially for triple-A tenants like QSR outlets and national retailers.

Spring doesnโ€™t wait

With only 15โ€“16 auction weeks left in the calendar year, Jesse warns agents that time is short and planning is crucial.

โ€œSpring runs out quickly,โ€ he says.

โ€œIf youโ€™re not prepared now, you miss the jump.โ€

Given the need for a two-to-three-week lead time to get a property ready, followed by a four-week auction campaign and six-week settlement, listings that arenโ€™t already in play may not settle until 2025.

โ€œThe smart agents are preparing their vendors now,โ€ he says.

โ€œIf someone wants to be sold and moved before Christmas, they need to get serious.โ€

Jesse says that agents need to have honest conversations with vendors around price.

โ€œThe dizzying days of 2021โ€“22 are gone,โ€ Jesse says. 

โ€œThe market has found a new level. 

โ€œVendors who understand that are seeing better results than those who hold out for prices that no longer exist.โ€

Why accurate pricing wins auctions

One of the clearest patterns Davidson sees among high-performing agents is a strong focus on setting realistic price guides and getting vendor alignment on those numbers.

โ€œIf the agent thinks itโ€™s worth $2 million and the vendor wants $2.3 million, youโ€™ve got a gap,โ€ he says. 

โ€œBut when you price well, you get more buyers. More buyers means competition, and that drives price.โ€

Ironically, itโ€™s often the vendors who are willing to price conservatively who end up achieving the strongest results, he says.

โ€œThe owners shooting for the stars often miss the mark entirely,โ€ he says. 

โ€œBuyers walk away, assuming theyโ€™re not serious.โ€

Jesse also says that while price is important, itโ€™s rarely the sole driver of a decision to sell, and great agents know how to uncover and work with a sellerโ€™s deeper โ€˜whyโ€™.

โ€œNo one wakes up and decides to sell just because their house is worth $3 million,โ€ he says. 

โ€œTheyโ€™re upsizing, downsizing, moving interstate, divorcing, grieving โ€” thereโ€™s always a story.โ€

The best agents, he says, market that motivation, and buyers respond.

โ€œWhen buyers know the vendor is serious about moving on, it creates confidence,โ€ he says. 

โ€œThereโ€™s a huge difference between an owner whoโ€™s testing the market and one whoโ€™s genuinely ready.โ€

The auction advantage

Finally, Jesse says auctions remain one of the best tools to drive urgency in a market where urgency is otherwise lacking.

โ€œIn 2021 and 2022, buyers were scrambling. Thatโ€™s not happening now. But auction gives them a deadline,โ€ he explains.

โ€œIf Iโ€™m a buyer looking at three properties, but one is going to auction in three and a half weeks, Iโ€™ve got to prioritise that one. 

โ€œIt forces action.โ€

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Rowan Crosby

Rowan Crosby is a senior journalist at Elite Agent specialising in finance and real estate.