It is impossible to escape the media’s seemingly unending coverage of the affect that interest rates and the current economic environment is having on the housing market. From a review of the Residential Sales in the March 2008 quarter, the figures that have been reported for NSW are as follows:
Houses Sales – 19210 3.4%
Unit Sales – 11303 (6.1%)
Land Sales – 2780 0.1%
The percentage figures indicate the Average % Change in Median Prices from last Quarter.
Figures and statistics are based on sales reported for the quarter as at 6th June 2008 and provided under licence from the Department of Lands NSW. Estate Agents Co-operative Ltd is authorised as a Sales Information Provider by the Department of Lands.
Based on real-time sales data from Red Square as reported by our agents the average days on market for Residential Dwellings during the quarter was 107 days compared to 96 days for the quarter ending December 2007.
Overall it appears that median prices have increased marginally in the sale of Houses but continue to decrease in the Unit market with volume of sales down significantly across the board. We foresee a further slowing of the market both in terms of prices being achieved and the volume of sales over the next six to twelve months. Indications to date for the quarter ending June 08 based on our real-time sales data show a further blow out in the number of days that residential properties are remaining on the market with our current statistics now showing an average of 113 days.
Our assumptions are also based on continued negative press regarding “mortgage stress” and housing affordability resulting in a lack of confidence in consumers that may be looking at entering the property market.
Buyers are extremely cautious due the above mentioned negative press and vendors because of their perception that they will not achieve the desired price for their property.
Across the state, the rental market is very tight with an almost zero vacancy rate as well as rents increasing continually with demand as strong as ever.