We’re running out of houses to buy.

Nationally, property sales have been running 30-35% ahead of new listings coming on the market.

This of course means that properties are selling quicker, vendors are not having to discount their prices as much (or at all) and property prices will continue to rise.

Source: Westpac

The total stock of properties on market for sale has declined sharply, now equivalent to just 10 weeks of sales at their most recent pace.

That compares to 20 weeks of supply at this time a year ago and a ‘normal’ supply of about 16 weeks.

The picture is similar across almost all markets, with a slightly more balanced picture in Perth being about the only exception.

What’s happened to buyer sentiment?

Sentiment-wise, the hit from the latest COVID-disruptions is yet to fully play out, but our sense on the ground is that there is still plenty of pent-up demand.

We’ll see how big a shock to the market the prolonged lockdowns in Sydney will be, however, if the experience in Melbourne last year is anything to go by, consumers are likely to ‘look through’ these disruptions and look to the future.

Westpac’s ‘time to buy a dwelling’ index has continued to track lower, falling a further 9.6% to 96.9 over the three months to July.

Only some of this relates to COVID disruptions with the more important driver being a continued deterioration in housing affordability.

The index is now 26.6% below its November peak and in net pessimistic territory, in other words, those saying it is a bad time to buy outnumbering those saying it is a good time.

Source: Westpac

COVID developments have obviously caused some disruptions, with the Victorian index dropping 9.3% during its lockdown in June but bouncing 25% in July prior to a return to lockdown a week after the survey. 

The NSW index dropped 7.8% in the month of July.

However, a clear underlying trend decline is apparent across the board and mirrors the sharp surge in prices.

The 12.2% jump in dwelling prices nationally since the start of the year has taken affordability back to 2017 levels and this means response to this question about whether they believe it’s a good time to buy a property tends to decrease, however, this doesn’t mean consumers will stop buying properties.

Quite the contrary!

Now is the time to take advantage of the opportunities the current property markets are offering

Sure the markets are moving on, but not all properties are going to increase in value. Now, more than ever, correct property selection will be critical.

You can trust the team at Metropole to provide you with directionguidance, and results.

Whether you’re a beginner or an experienced investor, at times like we are currently experiencing you need an advisor who takes a holistic approach to your wealth creation and that’s exactly what you get from the multi-award-winning team at Metropole.

We help our clients grow, protect and pass on their wealth through a range of services including:

Strategic property advice – Allow us to build a Strategic Property Plan for you and your family.  Planning is bringing the future into the present so you can do something about it now! Click here to learn more
Buyer’s agency – As Australia’s most trusted buyers’ agents we’ve been involved in over $4Billion worth of transactions creating wealth for our clients and we can do the same for you. Our on the ground teams in Melbourne, Sydney, and Brisbane bring you years of experience and perspective – that’s something money just can’t buy. We’ll help you find your next home or an investment-grade property.  Click here to learn how we can help you.
Wealth Advisory – We can provide you with strategic tailored financial planning and wealth advice. Click here to learn more about we can help you.
Property Management – Our stress-free property management services help you maximise your property returns. Click here to find out why our clients enjoy a vacancy rate considerably below the market average, our tenants stay an average of 3 years, and our properties lease 10 days faster than the market average.

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