Time on Market Close to 2010 Standards
The houses and units in capital cities are on fire and pleasantly so. They are showing robust trends not only in terms of auction clearance rates but also in terms of time on market and discounts.
Lower “time on market”
On an average, houses are witnessing contract exchanges 38 days after they are being first advertised for sale. For units, the figure is 35 days. This is a lot faster if you compare it to 56 days and 53 days respectively for the same time in the year 2012.
Lesser vendor’s discount
Another thing worth noting is that the vendor discounts are on a decrease across Australia. The present figures are quite proximal to the 2010 figures (before the debacle on 2011). On an average, units are selling off at 0.8 % lesser discounts when compared to 2012 (same time). Houses are doing even better, averagely selling at a neat 1.2% lesser discount.
Properties selling for higher value
Properties are also selling at a higher sticker and this gives all the property market horizontals a reason to cheer. In terms of properties selling above list price, we are doing a lot better than 2012. 4.2% more houses and 6.7% more units have sold above list price in comparison to the same time in 2012.
Sustainable value growth
Appreciable home value growth is on the cards. While there have been speculations that Sydney will register only modest (sustainable) growth in the vicinity of 5%-6% in 2014, a few property pundits are quietly confident about a phenomenal 15% growth. If we can grow while respecting the intrinsic economic fundamentals, nothing quite like it.
The RBA then will need to be lauded for taking the apparently risky route of reducing the cash rate. While the same has brought great sense of revival in the property market and the construction industry, daggers were drawn last year when the RBA was making back to back cuts in the basis points.
Do you think value growth in Sydney will come down to modest standards in 2014?