Insights and Trends In the Property Market
Vendors have been cautious during lockdown but buyers are keen!
With lockdowns expected to continue through to mid-October in NSW and possibly longer in Victoria, further growth is expected in the coming months as record demand from buyers outpaces the falling volume of listings and prices continue to rise, albeit at a slower rate.
Buyer demand has reached record levels despite lengthy Covid lockdowns.
Even though Sydney property values rose 1.8% in August, the momentum in growth is showing signs of easing, since peaking in March this year, when values rose 3.7% in a single month – the fastest pace in the city in 32 years!
Over the past year, Sydney prices of dwellings have risen 20.9%, Melbourne 13.1% and Brisbane 18.3%, according to the latest figures from Corelogic:
Covid lockdowns are set to delay the Spring peak selling season in Australia’s biggest property markets of Sydney and Melbourne while vendors face uncertainty about listing properties during lockdown restrictions.
So the forecast for Spring?
A strong front from buyers with low pressure from sellers causing turbulence in prices in the property market will likely ease when Covid lockdown eases. Having said this, for the market to fall, we need vendors to drop their expected sale price, and from the would-be-sellers I speak with every day, I don’t see that this is too likely.
In summary, whilst I don’t believe property prices will drop, I do think the growth rate will ease as more properties hit the market, and it might be a little easier to snap up that dream home or investment property!
If you would like to dig deeper and discover some Insights and Trends In the Property Market, watch the video I prepared in the link at the top.