Property boom: tide turning for Sydney home buyers

There’s light at the end of the tunnel for home seekers struggling with Sydney’s abysmal supply of available housing and soaring prices.

Preliminary data showed the supply of for sale properties has started to pick up this month after freestanding house listings hit a record low in August.

Nearly 6000 more properties became available in September, according to research group CoreLogic, and the volume of total listings was just 3.9 per cent below the five-year average for this time of the year.

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The Ray White group, the country’s largest network of real estate offices, also confirmed there was an increase in homeowners committed to soon begin property marketing campaigns.

Housing experts said the increase in stock would gradually moderate price rises and take pressure off of buyers to make snap purchasing decisions.

A shortage of available housing was one of the main drivers of rampant price increases during Sydney’s extended lockdown.

Sydney’s median property price, based on sales of townhouses, units and houses, jumped about 6 per cent since the city went into lockdown in June.

A typical property currently costs about $1.04 million, up from about $980,000 before lockdown.

Ray White chief economist Nerida Conisbee said more homeowners would list as lockdown restrictions began to ease.

Until recently, most homeowners with plans to sell had delayed listing their properties, fearing restrictions would impact their ability to show buyers through their homes and get a top price.

This hesitancy from sellers was not matched by buyers, who – spurred by low interest rates and record competition for properties – remained an active force in the market.

A look at auction statistics revealed just how difficult it has been for buyers competing in the low listings environment: the average auction in August had 10 bidders.

For some perspective, auctions in 2019 typically attracted three bidders, while a “hot auction” two years ago would have had five to seven bidders.

Auctioneer Michael Garofolo of Cooley Auctions said seller’s hesitancy to list was unfounded – even in the 12 LGAs that, until recently, had the tightest lockdown restrictions.

“(Lockdown) didn’t make a negative difference, not at all,” he said. “If you sold, you would have got a better result than before lockdown.”

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