It’s all about supply and demand. With vendors hunkering down over the winter months and hungry buyers on the prowl, the scales have once again tipped in favour of the seller.
While there has definitely been a shortfall of available housing stock – thanks to sellers going into winter hibernation – there has been no shortage of red-hot buyers over the past month, resulting in a recipe for high demand and generating a swirl of multiple offers. This has been a reassuring time for vendors that they are gaining the best out of the market.
We are seeing this pattern across all markets. Sales numbers for most areas in and around the western suburbs and over the bridge to the North Shore are up on last years numbers, along with median values, with the exception of a couple of outlying suburbs.
Many of the buyers have been first-home buyers, who are in a ready-set-go position to buy, armed with pre-approvals and assisted by the extraordinary low cash rate. Some have been standing on the edge of the market for some time, and only now see the current market as an opportunity to make the commitment – along with a reassurance in investment market that there are still affordable opportunities out there, especially out through the western corridor. The other part of the buyer market is those who see an opportunity to trade up. After all, everything is relative, if you are selling and buying in the same market.
The good news on the housing stock front is that there is a line around the corner for the Spring market in the pipeline, so balance will be restored in the coming months.
Auctions are still leading the way in June for Ray White Damerell Group, with 75% of vendors choosing this method to sell, bringing days on market to only 24, plus an outstanding, industry leading clearance rate of 76% of properties sold.