Sydney Property Market Update 24/08/2019
What's the easiest way to tell the metaphorical "temperature" of any particular real estate market?
Well akin to using a thermometer, licking your finger and putting it in the air or waiting for the three month old data to be compiled and reported to you there really isn't a fool proof way to actually do this.
All I can provide is what has worked for me in the past and I still believe holds true today.
It's pretty simple. For example, if you want to know what's going on in Marrickville right now log on to one of the major portals and see exactly how many properties in total are currently available. By my estimates there are 55. Then you go to the sold section and see how many homes traded in July (23) and June (32). That tells you there is precisely two months’ worth of stock for sale in Marrickville which is fast changing from a buyers market to neutral and then a sellers market.
When less than two months of stock is around it becomes increasingly harder for buyers to have an appropriate amount of choice. This then manifests itself in lower days on market, greater competition, more registered bidders at Auctions, stronger clearance rates and ultimately higher prices.
That's where we appear to be right now.
And of course, this doesn't mean every other suburb in Sydney is exactly the same.
If you were to do the same exercise in Dulwich Hill today there would be 27 properties for sale and a combined 33 sold across June and July putting it at less than two months stock.
This measurement also doesn't take into account categories of property. Within a suburb there could still be a healthy number of two-bedroom apartments available but a chronic shortage of family homes and vice versa.
Try it out though and see how you go. I've always found it to be the quickest and easiest way to know what's happening in a general sense.
You can view our weekly market update video below also which discusses this topic among others.
That's it from me. Have a great weekend and I'll see you next week!
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