WHY ARE WE SEEING STRONG SALES RESULTS NOW ?
SUMMARY
• Spring has brought confidence with it .
• Record levels of buyer activity are driving demand .
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 ?
The spring selling season is in full flight and confidence continues to soar across the Australian property market . In the last seven days , Ray White offered 4,877 new properties to the market which is eight per cent lower than the same time last year . This combined with the strong buyer demand tilts the conditions in the favour of our sellers at the moment .
Supply We are well into spring , and it ’ s this the time of year where we start to see an increase in the number of ‘ New Listings ’ coming to the market . Although we are seeing numbers on a similar inclining trend , this week the number of ‘ New Listings ’ are down 8.2 per cent compared to this week last year and 12.9 per cent less than the year before . When looking at the ‘ Total number of listings ’ available on the market we see that there has been a nine per cent uplift for buyers to choose from . This may seem like an upward trend however supply levels are still relatively low sitting at 13.2 per cent less than the year before . ( refer to Chart 2 ).
# Listing Authorities / 28 days
Chart 1 : Listing authorities
This chart shows that the number of new listings is down 8.5 per cent compared to this time last year .
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
Chart 2 : Total available listings
# Total Listings
30k
25k
20k
15k
10k
5k
2019 2020
Source : Ray White Listings Data
This chart shows the total number of listings are up 9.3 per cent compared to this time last year .
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
2019 2020
Source : Ray White Listings Data
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