CoreLogic have recently released a report outlining how the housing market is performing throughout lockdowns, past and present. Despite the delta variant of Covid-19 spreading in Australia and forcing strict restrictions within the property sector, the market continues to move forward with strength.
Auction results across Sydney and Melbourne have remained resilient in lockdown, both this year and last year, although statistics are showing a larger than normal number of auctions are typically postponed or sold prior to the auction event. The Sydney housing market in particular has shown resilience in its most recent (and current) lockdown; for the two weeks ending 4th of July, Sydney has seen 74.6% of scheduled auctions achieve a successful result. CoreLogic suggests that demand takes a hit during lockdowns as a rule, evident by the uncertainty amid national restrictions last year and the drop in housing market sentiment – but during these times supply also declined, because sellers and agents knew it may not be the best time to market property, helping to balance out the overall effect on prices.
Another factor keeping the property market stable previously was the Government support measures put in place: the enormous income support packages provided to households, the role of JobKeeper in maintaining employment relationships, low mortgage rates and mortgage repayment deferrals. In the event our current lockdown extends, the future of housing demand and supply becomes much less certain if that same government and institutional support is not in place.
Days on market statistics continue to fall. Less than a week stands between the time taken to sell a home in a capital city and in regional Australia, with the median days on market sitting at 27 days across the combined capital cities over the three months to June, and 33 days across combined regional markets, CoreLogic figures show. That is down from 43 days in the capitals and 62 days in regional markets over the same three-month period the previous year, during part of which the nation was in lockdown. Tim Lawless, CoreLogic’s research director suggests this is a reflection of how tight the market is, reporting that the total number of homes for sale is still tracking about 24% below the five-year average, yet transaction activity is up, resulting in homes selling quickly with “little in the way of discounting.” Conditions remain in favour of sellers; buyers don’t have a lot of choice and likely feel rushed in their decision making, fearing that if they take too long, chances are they’ll miss out on the property. Even amid the Sydney’s current lockdown, values have shown little sign of slowing down, sitting up 1 per cent over the first 13 days of July and rising 2.6% over June.
If you are looking to take advantage of current market conditions, regardless of whether you are selling or buying, reach out to us on 02 4504 8004 so we can help!