No slowdown in property sales this Christmas
2020 has been a different year indeed, and in the property market that point of difference is extending right up until Christmas and the new year.
Unlike years gone by when things tend to quieten off over the festive season, this year there are no signs of a break.
So, what’s going on in the property market and is now a good time to buy or sell?
The 2020 property market in review
When Covid caused lockdowns across Australia in April, the property market was tipped to take a hit. That doomsday scenario never eventuated due to a range of stimulus from the government, record low interest rates, and financial reprieves including mortgage deferrals.
Instead the property market slowed, with limited new supply entering the market. This served to protect prices, particularly in the major metropolitan areas like Sydney and Melbourne.
The limited supply was absorbed by a limited buyer pool, and as the Covid situation improved the market began to quickly recover.
Where are we now
As we head into the 2020 holiday season a number of things are occurring that bode well for the property market.
Buyer sentiment has improved, interest rates remain low, and finance is proving easier to come by. Meanwhile, the strange year that was 2020 is prompting many people to re-evaluate their lifestyles and look for properties that better suit their needs.
The work-from-home trend that we all experienced during 2020 also means people are a lot more flexible in the locations they are prepared to move to.
Together these factors are resulting in intense interest in the property market, with people actively looking to buy. Meanwhile, others are seizing the opportunity to sell as they look to take the next step in their property market journey.
As we round out the end of 2020, that means there’s little sign of a slowdown when it comes to buying and selling. Even with the Christmas break only days away, the market is still running hot.
The data that supports these claims
Auction data is like the litmus test of what’s going in the property market. It reflects both supply and demand, with the volume and clearance rate offering an insight into whether properties are being snapped up or languishing on the market.
At the moment volume is high and that trend is on track to continue. For example, CoreLogic notes this past weekend, volume was its highest since early April and the preliminary clearance rate is tracking at 74.6 per cent.
In other words, three quarters of the 2537 properties taken to auction across Australia at the weekend sold under the hammer. That’s at the higher end of the success rate and indicates a very positive sentiment from buyers.
Normally, we’d now see a slowdown as people settled in to celebrate Christmas, but this year CoreLogic also reports auction volumes will continue to be high over the coming weeks. At present they’re tracking 2300 auctions to take place this weekend, just five days shy of Christmas.
What does this mean for sellers and buyers?
If you’re looking to buy or sell, now presents a great opportunity. It’s clear buyers are actively seeking properties and aren’t looking to take a break from that over the weeks ahead.
Meanwhile, the demand for properties could indicate price rises ahead so there’s never been a better time to purchase.
If you’re looking to sell your property, you can talk to an expert Eview Group agent in your area here, and if you’re looking to buy, the current properties we have available for sale can be found here.
Alternatively, use the form below and one of our Eview Group agents will get in touch.
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