LOCKDOWN HASN'T STOPPED BUYERS
As we see our beautiful city of Sydney go into lockdown, it hasn't stopped any buyers from putting their plans to purchase a property on hold. We are still seeing a good volume of interested purchasers but our challenge will be the growing nervousness from sellers about the impact of restrictions on inspections and on-site auctions.
Over the weekend of the 10th of July, we still saw a strong auction clearance rate of 74% in Sydney. This is still a positive figure for being into the third week of lockdown. For the time being there is yet to be any sign that the lockdown has slowed down or stopped buyers from making private inspections now that open houses are cancelled.
All the capital cities saw an uplift in values in June, ranging from a 3.0 per cent rise in Hobart to a more subdued 0.2 per cent lift in Perth. In Sydney, values were up by 2.6 per cent, followed by Canberra (2.3 per cent), Brisbane (1.9 per cent), Adelaide (1.6 per cent), Melbourne (1.5 per cent), and Darwin (0.8 per cent).
As we go deeper into lockdown in Sydney we could see frustrated homebuyers draining the supply of properties available due to sellers holding off until we come out at the other end. This will lead to less sales activity, but the market is not going to go backwards. With more buyers out there than properties, it will keep the market strong. Along with good unemployment figures and low interest rates, we should feel positive that the housing market holds firm.