Sydney's long summer listing times have created a sellers market

Sydney's long summer listing times have created a sellers market
Sydney's long summer listing times have created a sellers market

Most people when buying and selling a home seek to do so around the same time, often trying to juggle the settlements for the same day.

They seek to get the highest price possible for their current abode and to secure their next home house as cheaply as possible.

And they hope to get through the process with as little pain as possible.

Most think the logical order is to sell your home first and buy second as this way buyers know exactly how much money they have to spend.

It stops buyers overestimating the worth of their current home and finding themselves in dire financial straits having purchased from an overly optimistic position.

However, by selling first you may be forced to rent while you look for a suitable new home which can mean two moves.

And one of the biggest risks faced if there is an extended gap between sale and purchase is that rising property prices will mean less money as time goes by. 

In the current market rebound buying first is possibly the better way to go.

Finding a buyer won't be too much trouble once you have locked in your own shift.

It's because Sydney is in a seller’s market.

Ofcourse over inflated hopes that cloud your judgement won't see the shift go seamlessly.

The current time on market is rather high, but it reflects the extended break that most estate agents take over the summer.

CoreLogic calculates the typical Sydney private treaty sale is currently taking 58 days for houses, and 63 days for apartments.

Hobart house vendors are selling in just 41 days while Brisbane vendors are taking 77 days.

Sydney vendors started summer with houses selling in just 28 days, so it just shows how much the market switches off.

Often the summer break, infact any break including Easter, provide a turning point for the market psychology.

I sense this year given the so-so summer holidays, some even called it a black summer, that people just decided to avoid making any firm decisions to list.

This was seen when the REA Group noted the Australian residential volumes were down 13 percent in January, with declines of 7 percent in Sydney and 5 percent in Melbourne.

It came after national residential listings declined in the second half of 2019 by 14 per cent, with a 17 per cent dip in Sydney and 16 per cent in Melbourne.

Ofcourse many fresh leftovers were snapped up pre-Christmas such was the pent-up demand from buyers.

So there has been a delayed start to the selling season, although auction listings are now coming.

Last Saturday saw some 400 offerings, and an 80 percent presliminary success ratre, compared to the 52 percent clearance rate from 301 listings this time last year the 60 percent success rate from 466 in 2018.

This pickup has unfortunately seen house hunters rushing into property purchases without doing necessary checks.

Data from conveyancing platform Global X revealed nearly 20 per cent of buyers did not pay for building inspections to be done on their prospective property purchase, while a quarter did not undertake pest inspections.

Realestate.com.au chief economist Nerida Conisbee has seen frustration mounting among home seekers, who had few housing choices available and were repeatedly up against “really cashed up” buyers.

This article first appeared in The Daily Telegraph.

Jonathan Chancellor

Jonathan Chancellor

Jonathan Chancellor is one of our authors. Jonathan has been writing about property since the early 1980s and is editor-at-large of Property Observer.

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Listing Market Activity Selling Conditions

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