Maintain the momentum

We had the latest CoreLogic numbers out last week which sparked the expected frenzy of excitement and analysis. The figures showed growth that continues to astound but with that comes real angst at the impact of the ever-growing value of residential property in Sydney. So, let’s take a look.

The numbers for our business show the Sydney market upswing started in September last year. That timing took most people by surprise. It certainly did me. I had real concerns the proposed phasing out of COVID financial supports from September 2020 would dampen the market. Instead, it got hotter.

CoreLogic shows Sydney has delivered a 23.6% increase in value over the last twelve months. That’s phenomenal. That value has been delivered through consistent growth, albeit slowing. 

Over the last three months, the average growth was 5.7%, but in September it was ‘just’ 1.9%. Note I’ve put inverted commas around the word ‘just’ because in my view, whilst it is lower than previous months, that level of growth should never be seen as disappointing.

While growth has been relatively consistent the thing that has varied over recent months has been volumes. Volumes dropped significantly while we were in lockdown in July and August this year but picked up in September and we actually doubled our September listing numbers in October. 

The stock is now available with more coming through which is keeping our team incredibly busy.

Of course, the question now becomes will buyers follow into the market? Will more stock dilute demand and ease value growth? It could, but just as likely we could see the availability of more stock will bring more buyers back into the market with that maintaining a balance of market strength.

To date, our team have not seen any weakening in values secured for our vendors. The phones continue to run hot from potential buyers who continue to recognise the strength of the market and the need to be competitive to secure a property.

Skyrocketing growth can never be assumed and our team will always provide price guides based on the reality of the market rather than any assumption of expected momentum. But even with more stock available, there have been no signs of discounting.

It will be very interesting to see what happens over December and January. The last couple of years have obviously been unusual so it’s hard to identify a solid trend in activity although even with COVID last year and bushfires the year before our team were kept busy over the holiday season. 

This year will the much-anticipated easing of travel restrictions might impact activity but right now we are as busy as we’ve ever been, and the team will keep pushing to maintain that momentum.