Vendors who wait may find their property faces greater competition from others in the market
- Written by Tim McKibbin, CEO, Real Estate Institute of NSW
Vendors choosing to sell now are reaping the rewards of intense demand from a motivated buyer pool and this is set to continue.
Others waiting on an end to lockdown, or the coming of spring, or both, should be engaging an agent now.
The reduced volume of properties for sale is generating extremely strong prices, and we expect another week ahead characterised by a significant number of properties selling prior to their scheduled online auction.
Perhaps the market will experience an increase in properties becoming available later in the year. Vendors who wait may find their property faces greater competition from others in the market.
Nevertheless, the level of pent-up demand unperturbed by lockdown suggests the market will continue to favour sellers in the short to medium term.
CoreLogic figures released last week suggest Australia’s residential property market is tipped to surpass $9 trillion in value by year’s end on account of rising house prices and a boom in construction.
But in New South Wales, the boom in construction is not having a material impact on supply.
As the cost of lockdown spirals into the tens of billions of dollars, a robust property market is essential to counterbalance the economic loss. An environment of constrained supply limits the ability of the real estate industry to perform the recovery role to its full potential.
Certainly, the demand is there for more housing choice of different housing typologies in metropolitan and regional markets across the state. Real estate is playing a critical part in propping up the state’s finances, but with more supply, the industry has more to give.