“We anticipate another busy week ahead as the market advances towards what we see as a shorter end-of-year break, activity-wise.
“Median house price figures are showing small but steady month-on-month increases and based on current buyer appetites and the shortage of available properties, we see this trend continuing through December.
“The auction market remains strong with numerous examples of reserve prices being surpassed with ease over the weekend. This should continue to shape the next few weeks.
“If fear of missing out (FOMO) is a re-emerging trend, as has been reported, we can expect buyers to remain out in force right up until Christmas.
“Government stimulus measures and low interest rates are supporting demand and giving vendors confidence.
“According to the Federal Government, the extensions to the HomeBuilder grant announced last week will see an additional 15,000 homes built by March next year, on top of the 27,000 homes the scheme was already expected to create.
“Of course, these are national figures and are unfortunately only a blip in the long-term systemic supply shortage plaguing the NSW market.
“This shortage will continue to colour the outlook for 2021. Assuming no unforeseen correction, we see prices maintaining a steady and sustainable rise, clearance rates to remain strong, and average days on market to remain stable.
“Supply is the missing ingredient in a holistic housing recovery as we close the book on a tumultuous year.
“With overseas trips off the agenda, in coming weeks domestic holidays are on the cards for many people. It’s that time of year when romantic thoughts about purchasing a holiday home gather momentum.
“As with any property purchase, it’s important to put emotion aside, and this is especially true for holiday homes. However, this year is different, and this week REINSW will be presenting a different view on the virtues of investing in your favourite vacation spots.”
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All quotes can be attributed to Tim McKibbin, Chief Executive Officer, REINSW.
For additional commentary on these topics and all other matters related to the NSW residential market, contact:
Tim McKibbin, Chief Executive Officer, REINSW
Mobile: 0415 931 013
The Real Estate Institute of New South Wales (REINSW) is the peak industry body for real estate agents and property professionals in NSW. It represents more than 2000 agencies across residential sales, property management, commercial, strata management, buyers’ agency, agency services and auctioneering. Established in 1910, REINSW works to improve the standards, professionalism and expertise of its members to continually evolve and innovate the industry. It lobbies the government and industry on behalf of members, develops new products and services to benefit agencies and professionals, and offers training and ongoing professional development. For more information, visit reinsw.com.au.