Spring is in the air, the birds are chirping and the flowers are blooming. Traditionally Spring is the busiest season for real estate however experts are looking to see if Sydney’s market, in particular, holds up to scrutiny.
After a continued month-on-month increase of 1.1 per cent in dwelling values, according to CoreLogic RP Data, Sydney continued to have the highest rate of growth through the strong winter season.
However, the gross yield is at a record low for the city according to CoreLogic RP Data’s Head of Research Tim Lawless.
“The spring season will provide a timely litmus test for the housing market given it’s a time when listing numbers normally increase materially. It will be important to monitor whether buyer demand keeps pace with the additional number of homes being advertised for sale,” said Mr Lawless.
According to figures from the Domain Group, Sydney has now had clearance rates below 80 per cent for six consecutive weekends, and is following a decreasing trend. Lowering clearance rates could mean that there are fewer buyers. In addition to this, there will be more houses coming onto the market from the spring effect.
We are already seeing this coming into action with a 16 per cent increase in properties being advertised in Sydney, according to CoreLogic RP Data.This means that conditions are pointing towards more of a buyers’ market, with more properties available and less competition.
This flurry of activity could also be driven by homeowners feeling the slowdown of the Sydney housing market boom. In response to potential stagnant growth or price decline, they rush to realise the capital gains they have experienced from the past few months.
Real Estate Institute of New South Wales President, Malcolm Gunning, told The Daily Telegraph that “the market is going to flatten”. Therefore Spring potentially could be looking up for people wanting to buy.
If you are considering to purchase, make sure you are in right position by talking to the lending professionals at Customs Bank. As we are a member-owned bank, we work for you with low fees, competitive rates and superior service.