Sydney & Melbourne Markets Show Signs of Slowdown
Weekly Real Estate Market Update with Leigh Martinuzzi MPG
Last week Australia’s capital cities recorded the highest volume of properties going to auction since 2008, with CoreLogic reporting a total of 4,261 homes going under the hammer. Of course, that means more choice for buyers, which is why clearance rates have softened again this week to 71.4% nationally. On the Sunshine Coast, of the 58 properties taken to auction, there was a preliminary report of a 70% clearance rate. With more new listings coming to the market, we can only expect to see a slowing in house price growth.
However, the trend for a softening market isn’t consistent nationally. In the month of November Sydney’s house prices slowed to 0.9% growth down from a 1.5% rise in October. While Melbourne saw house price growth slow to 0.6% down from 1% in the previous month and a 1.5% monthly average in 2021. Queensland and to a lesser extent South Australia are still seeing prices rise substantially with November price rise of 2.9% and 2.5% respectively.
A key driver for the slowing market in the likes of NSW and Victoria is mainly because there are many more new listings coming to the market. In both Sydney and Melbourne, new listings trended up 26.2% and 35% respecting while Brisbane only noticed a 7.4% rise in new listings, and yet this is still 33.9% lower than the five-year average.
On the Sunshine Coast we are seeing very few new properties coming to the market, the lowest volume we’ve seen in some time. On top of that, REA highlight that for sale property searches in Queensland is well above the averages of any other state. While demand may not be keeping up with supply in Australia’s southern states, it sure is outstripping supply on the Sunshine Coast. This represents perfect conditions for those who are choosing to sell now.
Will we catch up? I think, yes, eventually. Check out another post I wrote about the expected surge in buyer activity we are expecting once borders open. https://martinuzzi.com.au/buyers-set-to-surge-as-borders-open-on-the-17th-leigh-martinuzzi/
There are many homeowners wanting to sell up however one of the biggest concerns I keep hearing is, If we sell, what happens if we don’t find a good replacement in time?” This is a fair concern! Of course, there are ways to mitigate the risk of being homeless. I also feel that once property owners who are contemplating selling see price growth slow, indicating the peak of the market, many will rush to the market in fear of missing out. This will help alleviate the fear of being homeless however buyers will also have more choice which may just help stabilise the market giving buyers less incentive in making premium offers.
AUCTION RESULTS STATE BY STATE (PRELIMINARY). WEEK ENDING SUN 28TH OF NOV.
- Queensland – =74% (151/1739)
- NSW – 87% (882/2075)
- Victoria – 79% (1116/1654)
- ACT – 95% (115/64)
- South Australia – 92% (146/452)
- Tasmania – NA (0/215)
- Western Australia – 45% (11/812)
- Northern Territory – NA (0/25)
*(Auctions/Private Sales)
REVIEW OF THE WEEK
Highly recommended. MPG have it sorted!
Leigh was engaged to sell our home in Feb 2021. We engaged with other agents to appraise the home however the other agents didn’t have the passion or experience in the field. Leigh spent a lot of time with us and was dedicated to the process and the sale right to the end. I highly recommend Leigh and his team. We had a great handover with the new owners and felt very at ease selling the family home. 5 Stars to Leigh and his team at MPG! – Palmwoods Seller
