The stock shortage in Sydney could drive the property market to recovery, with pricier regions already benefitting from the emerging rebound, according to the latest data.
The scarcity of sellers during winter made buying problematic. Auction listings dropped by 25% because homeowners refused to sell in the wake of the 15% decline in values over the past two years, realestate.com.au said.
The shortage resulted in early-bird sellers attracting a large pool of buyers and driving up prices, particularly in more affluent suburbs, according to realestate.com.au.
Northern beaches led the market, with sellers securing a 93% clearance rate in the week ending July 20. The median sale price was at $2.1m, according to realestate.com.au
Auctions in the inner west also had a $1.6m median sale price, and an 80% clearance rate, according to realestate.com.au.
In June, the premium housing sector’s decline has started to slow down, according to CoreLogic Head of Research Cameron Kusher.
“The most expensive segment of the market is seeing its rate of decline slow. It is still early days, but with the housing market expected to trough in late 2019, the premium housing sector may find a floor first and start to show some level of recovery before the other segments,” said Kusher.
Real estate agents agreed that a signal from Reserve Bank of Australia Governor Phil Lowe that home loan rates will stay low could further boost buyer confidence, according to realestate.com.au
The central bank would further lower the interest rate if necessary, and that an “extended period of low interest” is reasonable to expect, according to Lowe.