Your chances of buying a home in Sydney typically depend on the supply of stock versus demand. In other words, based on the number of properties for sale, how much competition is out there?
A good way to gauge this is by using sales listings. These tell us what's on the market right now, compared to an earlier time, and whether or not demand seems to be rising.
For example, sellers in Sydney have become more active lately, with new listing numbers rising by 17% as of mid-July, compared to the same time a year ago, according to CoreLogic RP Data.
Around 21,300 properties are currently being advertised across Sydney overall, representing a 13% increase on a year ago. In fact, Sydney’s advertised stock levels are now higher than they have been over the preceding three years, says CoreLogic RP Data.
So, we might assume that buyers have more choice and can possibly approach the market with less urgency.
- 17% rise in new listings as of mid-July, compared to same time last year
- 21,300 properties currently advertised across Sydney in total
Recent auctions present a chance
Going off the most recent figures for Sydney, auctions seem to have quietened a little and this presents an opportunity for buyers.
For instance, of the 537 scheduled auctions last week, only 70% were sold, says Australian Property Monitors, which is a lower number than we often see in Sydney.
Consider that in peak time the clearance rate hits 75% at least, which can then turn into 85% a week later.
So, the 'For Sale' sign is going up in routine fashion, but buyers are perhaps shying away from what has become a very hot market the past couple of years.
This might be why we're seeing more homes withdrawn or 'passed in', which typically means the reserve price was not met at auction. (The reserve price is the minimum price the vendor is willing to sell at).
Houses vs units
Now, keep in mind that Sydney is a diverse market, so while some properties aren't selling as quickly, large houses in premium suburbs are still sold for a king's ransom. Suburbs like Killara and St.Ives in the north, and Strathfield in the inner west, all remain in high demand.
So the prospective buyer after a reasonable deal might go for small but attractive units, some within 20 km of town. For example, Lane Cove had a couple of unit sales over the weekend that were in $720,000-$760,000 range.
Again, this isn't cheap but in a high-end suburb that's only 10 kilometres from the CBD, it's also not too bad.
*Any suggestions here are based on our observation of market data or are anecdotal and shouldn't be regarded as advice. Always consult a financial advisor for proper financial advice.