For home buyers dealing with Sydney’s soaring house prices and ultra-competitive auctions, there may be hope at the end of the tunnel. According to a survey issued this week, there was a 31% increase in new Sydney property listings from October to November, with the spike occurring after the city’s release from months of lockdown.
In some regions, such as north shore enclave Gordon and south-west suburbs Currans Hill and Ingleburn, listing growth was significantly higher.
According to the REA Group’s PropTrack Listings report, the number of properties listed for sale in these locations was more than double what it was last year.
Buyers would have more options with the increase in listings, as they had to battle for an exceptionally low supply of properties during the lockdown months. According to housing experts, buyers’ pent-up desire meant that sellers would still be able to get high prices, but the market would no longer be as “extreme.” Angus Moore, a PropTrack economist, and study author argued that looser limitations were driving more homeowners to advertise their homes.
“As route maps out of lockdown were published and easing limitations came into place, seller confidence was high across the country,” he said.
Mr. Moore noted that the market may take a few more months to flip because to the additional listings.
“While new listings have recovered, strong buyer demand and months of lockdowns in Sydney and Melbourne have maintained total listings at a low level across the country,” Mr Moore said.
“In the medium term, purchasers will face stiff competition due to limited supplies… Strong selling conditions are expected to last for at least the next few months.” Spring buyers will still be under pressure to make quick decisions, according to My Housing Market economist Andrew Wilson, but they will be in a stronger position than during the lockdown.
He went on to say that the price increase was starting to slow and that it was unlikely to return to the levels seen during the lockdown and earlier this year.
“Prices could potentially rise a little more,” he added, “but we’re unlikely to see a replay of what we witnessed this year.”
According to CoreLogic data, Sydney’s median house price increased by about 30%, or about $300,000, in the last year. It was the most rapid expansion since the 1980s.
Over the course of the year, unit prices increased by nearly 13% on average.