WHY ARE WE SEEING
STRONG SALES RESULTS NOW?
SUMMARY
• There has been a return of confidence in the property market.
• Buyer demand is up across all metrics.
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?
Over the past three months, supply has been low,
in historical terms and we have seen consistent and
strong buyer activity (demand). Put simply, there were
more buyers competing over less properties, creating
conditions that lean towards our sellers obtaining an
advantage in achieving better results. Our clients that
have come to market over this period have achieved great
results because of the basics of supply and demand.
Supply
There has been a change to supply in recent weeks.
We have seen an increase in new listings per Chart 1.
This could be due to a number of reasons - the increased
demand currently in the market that is giving sellers
confidence, together with the sustained auction clearance
rates across the country. However, our strong suspicion is
that there has been a return of confidence in the market.
Over the past few weeks we have seen a change in the
market dynamics from a national perspective, with total
number of listings now available up 2.7 per cent compared
to the same time last year, however when comparing to
the prior financial year (FY2019) the total available stock is
still down by 5.8 per cent (refer to Chart 2).
Chart 1:
Listing authorities
This chart shows the number of new listings have now
exceeded levels compared to 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
Chart 2:
Total available listings
# Total Listings
30k
25k
20k
15k
10k
5k
2019 2020
Source: Ray White Listings Data
This chart show the total number of listings are marginally
up compared to last year.
Jan Feb Mar Apr May Jun Jul Aug
2019 2020
Source: Ray White Listings Data
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