Ray White Now | Updated weekly Ray White Now | 26 May - Page 6

Why are we seeing strong sales results now? Our clients that have come to market in recent weeks have achieved great results because of the basics of supply and demand. In regards to supply, the number of properties ‘for sale’ have reduced significantly. With less properties for buyers to choose from - this leans towards our sellers obtaining an advantage in achieving better results. So the buyers active in the current market are competing over less houses, which is great news for every property owner currently selling. The other fundamental is that of demand, and in the case of real estate, buyers are the demand. We have seen strong demand from buyers active in the market; looking to transact. When we look at our auctions in recent weeks, we have seen the average number of bidders per auction exceed the numbers that were achieved before the current environment. So what factors are contributing to buyer confidence? • Interest rates are at record lows. Importantly, the general consensus among economists is that they will remain at these low levels for the foreseeable future. New listings to the market The chart illustrates the reduced number of new listings that is currently coming onto the market up to 25 May 2020 compared to the two prior years. # New Listings / 28 days 6.0k 5.0k 4.0k 3.0k 2.0k 1.0k Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul 2017-18 2018-19 2019-20 Source: Ray White Listings Data Total available listings The chart illustrates how the reduced number of new listings to the market combined with a healthy number of sales still taking place up to 25 May 2020 has reduced levels of properties for sale. # Total Listings 30k 25k 20k 15k 10k 5k Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul 2017-18 2018-19 2019-20 Source: Ray White Listings Data 6