Sydney Sees Surge In New Listings
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Sydney Sees Surge In New Listings

Vendors push to sell homes before the higher mortgage buffer.

By Terry Christodoulou
Wed, Nov 3, 2021 10:27amGrey Clock < 1 min

New home listings in Sydney have soared by 41% while Melbourne saw an 82% increase over the last month.

The rush comes as vendors scurry back into the market after lockdowns ended hoping to sell their property before the higher mortgage buffers come into effect, according to the latest SQM Research data.

The total listings jumped by 25.5% in Sydney during October to 29,183 – the largest monthly percentage increase on record. Melbourne lifted 25.1% to 41,265.

While October is traditionally strong for listings, SQM Research managing director Louis Christopher said this year vendors are looking to get ahead of any further slowdown in the market.

“This could be an indicator that sellers are looking to get out of the market before further macro-prudential tightening kicks in, and before we get an interest rate rise,” he said.

“I think buyer demand is still relatively strong, but perhaps it’s starting to come off a little, so if we were to see November recording a similar level of listings then I would be a little bit concerned.”

There is already an indication that listings are building momentum with SQM Research recording 1266 homes listed for auction in Sydney for the coming week and 1600 homes in Melbourne.

That figure builds off the 1144 homes taken to auction in Sydney and 1739 in Melbourne last week, according to CoreLogic.



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Ray White’s chief economist outlines her predictions for housing market trends in 2024

By Bronwyn Allen
Tue, Nov 28, 2023 2 min

Ray White’s chief economist, Nerida Conisbee says property price growth will continue next year and mortgage holders will need to “survive until 2025” amid expectations of higher interest rates for longer.

Ms Conisbee said strong population growth and a housing supply shortage combatted the impact of rising interest rates in 2023, leading to unusually strong price growth during a rate hiking cycle. The latest CoreLogic data shows home values have increased by more than 10 percent in the year to date in Sydney, Brisbane and Perth. Among the regional markets, price growth has been strongest in regional South Australia with 8.6 percent growth and regional Queensland at 6.9 percent growth.

“As interest rates head close to peak, it is expected that price growth will continue. At this point, housing supply remains extremely low and many people that would be new home buyers are being pushed into the established market,” Ms Conisbee said. “Big jumps in rents are pushing more first home buyers into the market and population growth is continuing to be strong.”

Ms Conisbee said interest rates will be higher for longer due to sticky inflation. “… we are unlikely to see a rate cut until late 2024 or early 2025. This means mortgage holders need to survive until 2025, paying far more on their home loans than they did two years ago.”

Buyers in coastal areas currently have a window of opportunity to take advantage of softer prices, Ms Conisbee said. “Look out for beach house bargains over summer but you need to move quick. In many beachside holiday destinations, we saw a sharp rise in properties for sale and a corresponding fall in prices. This was driven by many pandemic driven holiday home purchases coming back on to the market.”

3 key housing market trends for 2024

Here are three of Ms Conisbee’s predictions for the key housing market trends of 2024.

Luxury apartment market to soar

Ms Conisbee said the types of apartments being built have changed dramatically amid more people choosing to live in apartments longer-term and Australia’s ageing population downsizing. “Demand is increasing for much larger, higher quality, more expensive developments. This has resulted in the most expensive apartments in Australia seeing price increases more than double those of an average priced apartment. This year, fewer apartments being built, growing population and a desire to live in some of Australia’s most sought-after inner urban areas will lead to a boom in luxury apartment demand.”

Homes to become even greener

The rising costs of energy and the health impacts of heat are two new factors driving interest in green homes, Ms Conisbee said. “Having a greener home utilising solar and batteries makes it cheaper to run air conditioning, heaters and pool pumps. We are heading into a particularly hot summer and having homes that are difficult to cool down makes them far more dangerous for the elderly and very young.”

More people living alone

For some time now, long-term social changes such as delayed marriage and an ageing population have led to more people living alone. However, Ms Conisbee points out that the pandemic also showed that many people prefer to live alone for lifestyle reasons. “Shorter term, the pandemic has shown that given the chance, many people prefer to live alone with a record increase in single-person households during the time. This trend may influence housing preferences, with a potential rise in demand for smaller dwellings and properties catering to individuals rather than traditional family units.”

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