Winter residential property market posts strong results
Unlike the temperature, the residential real estate market has been hot this winter - seeing a high level of activity from homebuyers across the country.
This can lead to a number of great things for those thinking of selling a house, as high activity can often mean a strong rate of buyer demand, which can potentially result in prices being driven up by competition in the market.
The opportunity for homebuyers to enter the market is also looking better after the Reserve Bank of Australia lowered the cash rate for the second time this year, resulting in improved affordability in many areas and further fuelling the demand.
According to information from property research company SQM Research, the real estate market has been so hot in recent months that there has been a shortage of listings evident in many of the capital cities.
In the month of June, the level of available residential properties for sale in Australia dropped by 5.3 per cent, with Sydney seeing a substantial fall of 14.6 per cent.
Melbourne also saw a drop in listings at 5.1 per cent, translating to -8.7 per cent year-on-year.
At the same time, auction clearance rates have been extremely high, with many weekends in Sydney exceeding 80 per cent.
Victoria has also seen a stellar year so far for auctions, with Melbourne registering rates over 70 per cent for the last few weeks.
However, this shortage of stock may be set to change in upcoming months, as more people choose to take advantage of the hot market and list their residential properties for sale.
According to an article from Australian Property Monitors Senior Economist Dr Andrew Wilson, there has been a "steep increase" in the level of available housing stock in Sydney and Melbourne during the month of July compared with last year.
The number of properties listed by auction in Sydney has risen by 16.5 per cent year-on-year, and 8.7 per cent in Melbourne.
Dr Wilson noted that this activity is largely being driven by sellers looking to "take advantage of the strongest winter housing market experienced by those capitals for years," fuelled by high confidence and rising house prices.
All of these factors combined may indicate that now is a great time for people considering selling real estate to get active and involved in the market.