- REINSW CEO says consumers are still 'digesting' the budget
- Expects clearance rates o be in the high 70s/low 80s range
- Refers to renters returning to Sydney's Inner Ring
In his weekly remarks, Tim McKibbin, CEO of The Real Estate Institute of New South Wales (REINSW), has addressed the easing in prices and other factors influencing the New South Wales property market.
“Consumers are digesting the Budget and wondering what it means for them. As ever, for most, the change will be minimal, but the focus on spending and jobs supports sentiment,” said Mr McKibbin.
According to Mr McKibbin, buyer desperation has waned, meaning it is less likely record reserves and results will occur. Nevertheless, he believes transactional activity will remain strong.
“…the strength of demand remains consistent and properties that are reasonably priced will sell. Again, we expect clearance rates to come in at the high 70 or low 80 percentage mark. Even as we approach winter, buyer demand remains intense, as does demand for homes to rent.”
Tim McKibbin, REINSW CEO
He referred to last weeks REINSW vacancy rate data which has revealed renters are slowly returning to Sydney’s inner ring.
“In Sydney’s outer suburbs and the regions, rental properties are expected to remain in short supply, but in Sydney, especially in the near-CBD market, there is scope for absorption.
“There’s a chance the slight decline in inner ring vacancy will continue. This is good news for investors for whom good news is long overdue.”
Mr McKibbin concluded by saying that heading into winter, the market would continue to grow – albeit at a slower pace.
“Looking ahead to the start of winter, the residential property market remains well-poised, with price growth easing to more sustainable levels but a correction unlikely at this stage in the cycle.”
REINSW’s Roadshow continues with events occurring in Dee Why and Castle Hill this week.