The Number Story.
Wednesday 14 Dec 2016
The latest market statistics released by CoreLogic this week tell an interesting story. The size of the numbers for 2016 are well worth noting and surprisingly I think it is the Canberra property market that provides a great lesson for Sydney.
So let’s start at the top. Over the past four and a half years home values in Sydney have increased by 65.9%. Yes, you did read that correctly. 65.9%.
Over the last twelve months home values in Sydney have risen by 10.6%. But at the moment stock levels remain 10.2% lower than a year ago and, according to CoreLogic data analysis, there is currently only 50% less properties advertised compared to the 2011 peak selling season.
They are extraordinary numbers. With values so strong it is hard to believe potential vendors remain resistant to selling. Of course there is truth in the reasoning that lack of supply is driving demand and value but it is not automatically true that increase supply will dilute demand and diminish value.
And that is where the property market in Canberra has an important story to tell.
Canberra stock levels have gone against the predominant national trend and have increased substantially over the recent Spring selling season with new listings 20% higher than the same time last year.
But here is the key point to note. Total stock levels in the Canberra market currently sit 12.1% lower than the same time last year. That means rather than flooding the market the extra listings coming on line are being met with equal, if not greater demand, and values have increased 7.5% over the last twelve months compared to 4.5% last year.
It is a very real example that more supply can mean more demand and that can mean greater value.
So as we ease into the holiday season I encourage property owners and investors to really consider the advantages of listing and selling to take advantage of the strong market that continues to exist across Sydney.