The current NSW property market, flush with strong prices and steady demand, will be looked back on as a “historically significant” moment in time, according to a real estate expert.
Real Estate Institute of NSW (REINSW) Chief Executive Officer Tim McKibbin said the current market was “like nothing he’s seen before”, with record-low interest rates, tight supply and steady demand fuelling annual house price growth of more than 20 per cent across NSW.
Auction activity in Sydney has also been particularly strong, and Mr McKibbin said this market would be remembered for its unique set of circumstances and significant results.
“What we’re seeing now will one day be of historical significance,” he said.
“I’ve never seen the market perform like it has in living memory. I have agents telling me they’ve not seen anything like this in 40 years.
“The market continues to motor forward and while we’re starting to see a slight cooling as there are now more vendors willing to put their homes on the market, since coming out of lockdown, activity is still very strong.”
Mr McKibbin said up to 15 registered bidders were being reported at some auctions and while those numbers had dropped a little, to seven or eight bidders, more recently, he said the market was still robust.
“Auction clearance rates, week-on-week are above 80 per cent,” he said.
“That’s a very strong market and the price increases continue to head north.”
Mr McKibbin said that while an RBA cash rate review loomed next week, he didn’t expect to see much change in interest rates or the property market.
“Unless there is some change in terms of an economic influence, then I expect that trend to continue,” he said.
“We have strong demand, low interest rates and low supply, which means prices should continue to push north.
“There has been a lot said on APRA’s move, but frankly I don’t think that will have much of an impact at all.
“The RBA are saying they aren’t going to increase rates until 2024, which seems to be a long way off, unless they decide to change.”
With lockdowns easing and confidence still high, Mr McKibbin said the market was still favouring sellers.
“I’ve never given any advice as to when to buy and sell in all my 18 years, but I broke that rule recently when I said ‘this was a good time to sell’,” he noted.
“The reason I said that was there was very little stock coming onto the market as people were holding back.
“The buyers haven’t really changed, they have been looking to purchase regardless, while the vendors have been holding back and waiting.
“The market is hot and should remain so.”
