Despite the increased media attention and marketplace commentary around a softening market, property sellers remain confident about selling conditions. According to a recent article published by REA, the latest Proptrack Listings report shows at Q1 of 2022 was the busiest start to a year in eight years, when it comes to real estate listings.
While new listings surged across all capital cities, Sydney had a very strong start to the year with a 15.7% increase in new listings in March when compared to February, and an 11.7% increase year on year.
This increase level of stock will be welcome news for buyers, many of whom have weathered intense competition and limited choice over the past year as demand outstripped supply in many areas.
Data collected here at Cunninghams for Q1 2022 aligns with the statistics above, and following a seasonal lull toward the end of 2021 we saw a stronger than expected start to 2022. During January we saw the highest average number of buyers through our open homes for the year so far, and during the first two weeks of January we saw our listings climb from 32 to 51 active listings. This echoes the increase in stock experienced across Sydney and while there is still more stock on the market we are maintaining an average days on market of between 19 to 25 days.
It is also interesting to note in the image above, the steady decline in properties offered for sale in the past 12 years. This trend actually began in 2003 and as a result there has been an average annual decline of over 1% per year – which over 20 years means 20% less offerings and therefore a significant hit to the supply of listings for an ever growing demand for housing in NSW. When Governments discuss the supply and demand issues we are experiencing, this data gets omitted when it’s implications should be addressed to help find a solution.
In the lead up to an election and our first interest rate rise in over 11 years, buyers may act more cautiously over the coming weeks. Interestingly, history shows that people are naturally cautious during an election period. Without rhyme or reason, people are generally more vigilant in all aspects of life while they await an election result. This plays out for many businesses over different industries across the nation including real estate. Along with the NSW school holidays, we understand this to be a contributor to the mix of open home numbers over the last few weeks, and we expect this to return to a more stable average after 21 May.
We have heard a similar story from our friends at Clarence White Auctioneers, who tell us that the weekend of 28 May is filling up with bookings for people expecting to auction their property on that day, post-election.
As always if we can help you with any property related query, buying or selling in 2022, please don’t hesitate to get in touch.
To read the full article published by REA, click here.