There are some numbers I think are important for people to know when digesting the big headlines about big prices we are seeing with regularity right now. They’re numbers that are growing, but not in the way you might expect. So, here’s the deal.
I’m sure nobody would disagree with the idea that in Sydney we are a little bit obsessed with the property market. Auction clearance rates and property values are the subject of endless debate around dinner tables and on the sidelines of Saturday sport.
But here’s the interesting thing: Talk doesn’t automatically translate into action.
I saw some numbers recently that revealed the average length of time people are holding onto their family home is now thought to be between 15 and 18 years. In the past, the standard was for homes to be traded approximately every seven years. So, while we are all talking a lot more about real estate the fact is, we’re actually holding onto our homes for longer.
But just to be clear because it’s important to highlight that this trend relates specifically to the house market rather than the apartment market.
What we have seen is the population of Sydney increasing and with that increase in demand, the city itself has grown. We have seen the creation of amazing new communities and suburbs like Thornton in Penrith and Wentworth Point where there is a careful blend of medium and high density living around shared open and recreational spaces.
And while those suburbs are in high demand for the quality of life and homes they offer, there is still undeniable demand for the more traditional freestanding home in an established suburban location. Which is where the issue arises. With people holding those homes for longer, those property owners might be keen to talk value but that doesn’t mean they are ready to capitalise on that value!!
As a result, there is simply not enough properties coming to market to meet demand from those who want to enter. We are seeing house volumes decline year on year and so we see price records breaking.
The apartment market is different. There is more movement and more available stock which is why we aren’t seeing the same level of record-breaking results. However, as I mentioned in my blog last week it is pleasing to see values holding at a healthy level for apartments in and around the CBD.
In my view, it is incredibly positive for people to be talking about property, but I don’t expect every discussion about value to be the precursor to a listing. Our team are very keen to keep the conversation coming. We are happy to meet and provide clients with regular property appraisals to keep them up to date on the value of their property.
So, give us a call. We’re always ready to talk!