Sydney Dubbed “Extreme Sellers’ Market”
Best-selling market is an understatement when you’re talking about Sydney’s hot market. In fact, it’s now known as “extreme seller’s market” as dubbed by a new report. The latest Commonwealth Bank/CoreLogic Home Buyers Index (HBI) discovered that the number of new mortgages being processed by the CBA outpaced the number of properties advertised for sale in the city.
Easy translation: this means that if you’re going to buy property in Sydney, you have no chance of negotiating for a lower price as buyers are competing for limited supply. When it comes to negotiating, Melbourne still has the upper hand, says the report.
If Sydney’s the “extreme seller’s market”, the other side of the coin reveals Tasmania as the “extreme buyer’s market” with the vendors at the mercy of the buyers. This is all thanks to a large number of listings against the number of mortgage commitments.
Market conditions are generally balanced all across Australia, even though the south-eastern seaboard are favouring the sellers. Cameron Kusher, a CoreLogic RP Data senior research analyst, says that the national property market is balanced between buyers and sellers but with varied conditions across states and capital cities.
You can check the rest of the article here.
My take on the report
Agents like me are now pressured to maintain this status of “extreme seller’s market” and given the low interest rates, there’s actually going to be a lot more selling to be done within the next few months in the Sydney residential market. With the recently reported housing shortfall in Sydney, agents should be more focused on selling residential properties, or at the very least, assist those who want to purchase residential properties.