COMMENT
Heading into the traditional spring selling season, Sydney’s residential listing numbers are slightly down on the same time last year.
This reduced level of advertised inventory has been a key factor in insulating homes from sizeable price falls through the COVID-19 pandemic to-date.
So far there has been only limited distressed listings, and mostly from investors with empty apartments or no job, rather than owner occupiers, although this could change as fiscal support tapers off and the banks get nervous about their home loan arrears.
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If Sydney does see a dramatic spike in listings, and that does come most springs, it will lead to vendors needing to offer higher discounts to get their house sold. But sellers have yet to be forced into any serious discounting as they meet the new emerging market.
Vendor discounting for private treaty Sydney listings sits at 2.5 per cent for houses and 2.4 per cent for units, according to CoreLogic, which suggests estate agents are doing a great job on pricing to meet the market.
Vendor discounting has remained relatively low so far.
Houses have been taking 41 days and units 44 days to sell during the late winter months, which given the circumstances is a terrific time frame.
Other than homeowners retaining jobs, the next biggest issue whether Sydney’s housing markets can remain relatively resilient is the reopening of international borders, which isn’t going to happen anytime soon.
But the absence of foreign buyers has certainly assisted first time buyers into the more affordable apartment market.
The Federal Budget on October 6, and the NSW budget on November 19, will help shape the direction of housing markets, with no doubt additional policy measures.
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