tim mckibbin
Agents holding auctions still have a reason to smile, suggest Tim McKibbin. Image Supplied and Canva.
  • Auctions still been withdrawn
  • Solid prices are being recorded for those who still hold auctions
  • Said REINSW is awaiting further details about support for landlords and tenants

In his weekly remarks, the Real Estate Insitute of New South Wales (REINSW) CEO, Tim McKibbin, has welcomed the overall resilience of the Sydney market despite the extended lockdown.

Mr McKibbin noted that the clearance rates have generally remained high considering many properties have been withdrawn to auction – although it should be noted different methodologies are applied by data collectors when assessing clearance rates.

For those vendors who stay the course, however, solid prices are being achieved.

“The steady clearance rate figure is supported by a greater proportion of properties selling prior to auction, compared to non-lockdown periods,” said Mr McKibbin.

“Buyers are showing a willingness to act early to navigate restrictions, and we can expect more of the same this week.”

Tim McKibbin, REINSW CEO

He also cited recent research from CoreLogic which reinforced other lockdown trends noticed by agents.

“For instance, while values remain resilient through lockdown, buying activity and advertised listings tend to decline, only to rebound rapidly once restrictions ease.”

“The underlying supply shortage is a factor here too, as the CoreLogic research suggests demand is largely unaffected by lockdowns.

“Those intent on purchasing are unlikely to deter a property purchase altogether because of lockdown unless incomes have been significantly impacted.”

Mr McKibbin last week suggested to buyers and vendors a spike should be expected post-lockdown.

Mr McKibbin concluded his remarks by noting that Government stimulus is still an important mechanism when dealing with the fallout of the lockdown for landlords and stressed tenants.

Given the significant windfall in stamp duty collected by the NSW government over the past year, he has argued more should be given back to support both parties.

“It’s encouraging that Government, at least on the surface, appears to acknowledge it’s inappropriate for landlords to foot the bill as they did last time.

“However, like the rest of the industry, the REINSW awaits the fine print on the rebate scheme to be offered to landlords whose tenants are in financial distress as a result of the latest lockdown.”

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