With the onset of spring just a few sleeps away; there is a swell in the volume of enquiry leading up to the traditionally busy ‘selling season’. As a result, we are urgently seeking additional listings to meet demand, as stock has noticeably tightened – and not just here in Sydney, but nationwide.
CoreLogic, Australia’s leading real estate analytic and data group, have published figures demonstrating that listings are languishing in many key markets. They tracked 27,848 unique newly listed properties advertised for sale in July 2019, and 207,883 total properties listed for sale, and found that newly advertised stock is significantly lower relative to recent years, and -22% lower than a year ago. Meanwhile, total stock advertised for sale is also at the lowest level in many years and -3.5% lower than a year ago.
In Sydney, the number of newly advertised properties for sale hasn’t been as low as it is currently any time since CoreLogic began tracking listings in 2007. As the market starts to stabilise, vendor confidence looks to be turning. The number of new listings has started to rise slightly however, fresh listing additions are tracking -32.5% lower than a year ago. The total number of properties advertised for sale is trending lower quite sharply, down-14.7% compared with the same time last year. Total stock for sale is at similar levels recorded in 2016 and 2017 however, total listings remain much higher than each year from 2013 to 2016 when strong buyer demand was outweighing advertised supply and placing upwards pressure on prices.
The low number of new listings being added to the market is partly seasonal (listings tend to trend lower through winter); but is also reflective of weak vendor sentiment. The recent improvement in housing market conditions should help to support a rise in vendor confidence as we approach the seasonal upswing in listing numbers through spring and early summer.
Cameron Kusher from CoreLogic summarises, below:
“Whilst across most capital cities the volume of newly advertised stock for sale is very low, throughout August we are likely to see an increase in advertised stock levels as the spring season approaches. Total stock for sale has also been generally reducing however, it is not at historical low levels like new stock is.”
“With the recent changes to lending and consecutive official interest rate cuts, the market seems to be seeing some more demand for housing. While demand for housing has increased, it remains much more difficult to get a mortgage than it has in the past despite the low mortgage rates. The big question from here is if there is a lift in newly advertised stock for sale will there be enough demand to absorb the increase in supply? We will certainly find this out over the next few months.”
If you are thinking of selling NOW is the time to be getting your property ready and talking to us at Laing+Simmons Quakers Hill/Schofields about listing so you can take advantage of the increased momentum in activity that generally accompanies spring.