Buyers and vendors are becoming increasingly accepting of the new market for real estate in NSW
- Written by Tim McKibbin
Well-priced properties are attracting strong interest from buyers who have crunched their repayment numbers factoring in the rising interest rate environment.
While clearance rates hold steady, the volume of properties offered under the hammer has increased in recent weeks, supporting the number of transactions. This should continue to play out in the weeks ahead.
Meanwhile, the need to increase supply is gaining broader recognition from a number of influential sources.
This follows the release of the REINSW rental vacancy rate figures which show the rental market, particularly in Sydney, remains at crisis point.
There were calls for an increase in smaller dwellings and greater housing choice in regional towns to accommodate people at different stages of life at last week’s Regional Australia Institute’s national summit.
The economic policy director at the Grattan Institute called for people to accept greater density in their suburb, to support affordability for young people and downsizers.
According to the REIA’s latest Housing Affordability Report, rental affordability nationally declined in the June quarter, with the proportion of income required to meet median rent increasing to 22.9%.
The report shows that the decline in affordability in terms of purchasing a home outpaced the decline in affordability in renting a home for the quarter. Either way, for renters who are wanting to buy, the news is grim.
It cites the lack of supply and surging interest rates as the main culprits.
At a time when the actual market is ticking along steadily, there’s a chance for Governments to put in place the policies which will improve affordability in the future. It starts with supply.
