Declining Property Supply in Sydney's Blue Chip Suburbs.

The real estate landscape in the Lower North Shore and Eastern Suburbs has experienced significant shifts over the past year. An analysis of several key suburbs, including Mosman, Cremorne, Paddington and Edgecliff, provides insight into these changes.

In Mosman, the number of sales has declined by 32.8%, resulting in a total of 232 sales with a median market time of 29 days, a decrease of 6.5%. The total number of listings has also decreased by 38.7% to 46, with 259 new listings recorded, a decrease of 18%. The percentage of inventory on the market has decreased by 16.6% compared to the previous year, now standing at 4.82%.

In Cremorne, the number of sales has dropped by 48.5% to 34, with a median market time of 28 days, an increase of 7.7%. The total number of listings remains unchanged from the previous year at 11, with 41 new listings recorded, a decrease of 31.7%. The percentage of inventory on the market has declined by 33.9% to 3.3%.

The Eastern Suburbs has also experienced a decrease in sales. Paddington is down 17.3% to 230, with a median market time of 30 days, unchanged from the previous year. The total number of listings has declined by 45.8% to 32, with 231 new listings recorded, a decrease of 4.5%. The percentage of inventory on the market has decreased by 7.8% to 5.75%.

Similarly, Edgecliff has experienced a 31.6% decrease in sales to 13, with the total number of listings down 70% to 3. The number of new listings has declined by 15.8% to 16, and the percentage of inventory on the market has decreased by 13% to 6.58%.

The recent increase in the December Australian inflation rate reading has added to the argument for further interest rate hikes by the Reserve Bank of Australia, despite concerns about increasing financial strain for mortgage holders and declining house prices. The potential for additional interest rate hikes (as seen last week) has led to the appreciation of the Australian dollar above 70 US cents. Additionally, the national average of house prices has continued to decline, with the CoreLogic National Home Value Index down an additional 1.0% in January. Since its peak in April of last year, the national average of house prices has dropped by 8.9%, the largest and fastest decline on record.

To summarise, the real estate market in the Lower North Shore and Eastern Suburbs is experiencing shifts, as evidenced by the decline in sales, new listings, and available stock. Despite these changes, the median days on market remain relatively constant, indicating persistent demand for property in blue-chip suburbs.