The NSW residential market is on the road to recovery, with the current auction clearance rate indicating positive signs for the market.
Clearance rate for auctions in the NSW residential market are currently at 78% pushing close to 80%, which is the highest it has been in two years. These numbers represent a renewed confidence in the property market and are evidence that the housing conditions are stabilising.
A low supply of established property in the market has been one of the driving factors behind this positive change. Add in current low interest rates and a more stable government and you have all the ingredients for fantastic clearance rates.
Specially in Australia’s Capital Cities, supply and demand has always been a big driver for property prices, and we don’t envisage the current supply changing, meaning now is a great time to buy.
All over Sydney we are seeing high demand for high-quality properties in smaller boutique blocks, located close to infrastructure, new rail lines, transport and schooling. First Home Buyers and owner occupiers are back in the market and are looking to purchase in these blue-chip areas and developments. In addition, many vendors are committing to make their property look more appealing, with styling becoming a real trend across the board and with most vendors agreeing to stage a property. These have been key factors in the sentiment improvement of both, vendors and buyers, and will continue to be driving factors on the residential market recovery.
Interestingly, although the sentiment amongst buyers is improving, we have not seen a shift in pricing yet. According to Domain, Sydney property prices continue to fall in the 3rd quarter of 2019, with house prices falling 0.4 per cent in the quarter and 9.1 per cent over the year, and unit prices down by 7.1 per cent over the year. Subsequently, the median house price remains above $1 million, but is 14 per cent below the mid-2017 peak and the median unit price is $688,700, which is 11 per cent below the 2017 peak.
“Although the property prices fell further in the 2nd quarter and continue to fall on the 3rd quarter, the pace of the price falls is slowing” said Nelson Dueza Residential Director at Colliers International.
Ultimately, the forthcoming spring selling season will be the real test for the property market, and hopefully we will see a sizeable boost in the number of listings and, therefore, a levelling off in the property prices.
For more information on selling or buying existing residential property, please contact Nelson Dueza - Nelson.Dueza@colliers.com and 0411 837 584.