WHY ARE WE SEEING STRONG SALES RESULTS NOW ?
SUMMARY
• October saw records tumble as we posted our best month of sales ever .
• Consistent supply and pent up demand is driving the market .
Real estate markets are driven by a number of factors however the two basic fundamentals of supply ( the number of total properties for sale ) and demand ( the number of buyers active in the marketplace ) play a significant role in establishing market conditions that favour sellers or buyers . In general terms , when supply is low and demand is high , these conditions are favourable for sellers . Conversely , when supply is high and demand is low , these conditions are favourable for buyers . So what are we seeing now ?
Chart 1 : Listing authorities
This chart shows that the number of new listings is up 8.5 per cent compared to this time last year .
# Listing Authorities / 28 days
8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan
The market in November was as good as it gets . Ray White members transacted 8,000 property sales which resulted in $ 6.68 billion in sales . In our 118 year history we have never seen the market so strong . November marked a record month of sales for our group which was driven by consistent supply and pent up demand from buyers .
Supply As we near the end of the year , we typically see a decline in ‘ New Listings ’ coming to the market . Although we are seeing a similar trend this year , ‘ New Listings ’ are up 8.5 per cent ( refer Chart 1 ) which suggests we may see more activity as we head into the Christmas period . When looking at the ‘ Total available listings ’ there are currently 17,278 properties for buyers to choose from which is 3.3 per cent more than last year however when we compare to the previous year , there are 4,424 ( 20 per cent ) less listings ( refer to Chart 2 ).
Chart 2 : Total available listings
# Listings OTM
30k 25k 20k 15k 10k 5k
2019 2020
Source : Ray White Listings Data
This chart shows the total number of listings are up 3.3 per cent compared to this time last year .
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan
2019 2020
Source : Ray White Listings Data
10