The following market news features stats from the latest data by CoreLogic, Australia’s largest property analysts.
• First home buyer demand has increased over the past year due to incentives, falling property prices and investors leaving the market. In Sydney, first home buyers now represent 16% of all owner-occupier housing finance.
• With property values falling, gross rental yields have started to increase from historic low levels. This could entice some investors back to the market later this year. The gross rental yield for Sydney is currently 3.4% (January 2019).
• Settled sales are lower than twelve months ago and significantly less than the decade average. Transactions in Sydney are down by 20% over the last year.
• With less active buyers in the market, Sydney’s average days on market is currently 50 days. MyPlace Estate Agents average days on market is 35 in Botany, only one week longer than a normal four weeks campaign.
• Even though fewer properties are being listed for sale, total listings are higher than they were a year ago in Sydney and other major cities, because property is taking longer to sell.
• While previous housing cycles have generally been dictated by changes in interest rates, the current slowdown has been heavily influenced by changes in credit availability.
• The credit growth slowdown is primarily due to an acute reduction in investment lending; down 23.4% over the past year.
If you have any questions regarding the market or how best to navigate your property journey, we would love to help. Please call our team on 8303 1800.