The very low supply of housing on the market is fuelling further price growth. Take a look at this graph, showing the number of property listings for the first 4 months of each year since 2011 on the Northern Beaches:
You can see that year on year, the amount of properties on the market keeps reducing dramatically to less than half when compared to 5 years ago:
June 2016 marks the fourth year of this current growth cycle, so with record breaking selling conditions, why aren’t more people selling?
Many factors play a part in this. Some are holding off due to the federal election, while many people have simply put their plans on hold because they cannot find a suitable property to move into.
The other major factor is the high change over costs in moving particularly the payment of stamp duty when re-buying.
Now for sellers that are ready to go onto the market - should they wait until Spring?
A common misconception when it comes to selling real estate is that many people think the best time to put a property on the market is in Spring time.
Traditionally many people put their selling plans on hold in Winter because of the colder months. This in fact leads to an influx of property coming onto the market in Spring, which means more competition amongst sellers.
I urge you, if selling is on your radar, to forget Spring time and seriously consider selling in winter when there are less properties listed for sale.
Many housing economists are predicting that after a record period of building construction, there will start to be an oversupply of new housing completions in 2017/2018.
This will mostly affect new apartment sales while freestanding homes in good areas will still be sought after.
However, the projected increase in the number of new dwellings across Australia is going to start to outweigh our large population growth and this will more than likely bring an end to our housing boom.
I strongly believe that we are at the top and this is the year. Please feel free to contact me at anytime.
Thanks for reading,