Latest NewsListings Surge is Great for 'spring' BuyersMonday, 03 April 2017

Sale volumes and total values are up on this time last year, driven by a surge in auction listings. Last Saturday, 533 properties were listed for auction, compared with 343 for the same Saturday last year. This trend is expected to continue during the next two months as vendors aim to take advantage of the spring selling season combined with the incentive to act before the next phase of interest rate rises begins. At first, it might seem unusual that listings are so strong given prices softened in winter and early spring. This will provide opportunities for buyers, with potential sellers motivated by the impressive gains in property values during the past two years.

So, what should potential sellers expect? Owners of properties in the more expensive 30 per cent of suburbs in Sydney will be pleased. This has been the best-performing sector, with median house prices rising by an average of 12.5 per cent a year in the two years to August. The middle 40 per cent of suburbs isn't far behind, with an average rise in median price of 11.5 per cent. The more affordable 30 per cent of suburbs, however, have had a rise in median price of only 6.3 per cent.

This disparity was larger during the past year, when interest rate rises had a more pronounced effect on affordable suburbs.

Vendors will benefit from two years of strong growth, which will continue to drive solid activity for the remainder of the year.

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