It is clear…
Wednesday 07 Aug 2019
I’ve been talking about lack of stock for a couple of weeks now and while I don’t want to bore you by flogging the same issue ad nauseum I saw some numbers this week that I believe are worthy of sharing and definitely worth considering because I think make things clear…
I know there is a lot more to buying and selling property than just the numbers. Even the most hardened business person will admit emotion inevitably plays a role in any decision to list or purchase a property. There will be anxiety, nerves, fear and hopefully some excitement. But at the moment the market has been generating an intense level of confusion. What’s happening and what to do?
But let’s set that emotion aside let’s look at the numbers.
The clearance rate for the month of July averaged 67%. That’s the highest it’s been in two years. More than that the auction clearance rate is actually even higher, at 73% up from 52% for the same time last year. Those numbers represent an incredible turnaround in sentiment.
Its clear buyers are out there, prepared to put their hand up to secure a property and to pay good value.
At the same time the statistics show that in Sydney new listings are down 32.5% on the same time last year and total listings advertised for sale are down 14.7% on the same time last year. Actually, in terms of supply, Core Logic reports that in Sydney new listings coming to market have never been this low in all the years since they started tracking back in 2007.
It clear supply is currently not keeping up with demand.
But what to expect as the weather warms? Yes, spring will also hopefully deliver a wave of new listings. As I said last week I firmly believe it is not too late to list as new listings will in turn encourage new buyers into the market. The momentum we are seeing is positive and I do not see it easing. And I’m not alone. Domain economist Trent Wiltshire is predicting a 2% growth in prices before the end of this year. That is clearly good news.