Research commissioned by Well Money has identified a number of suburbs across NSW that appear to be defying the current property downturn.
The lender’s quarterly Green Shoots Report ranked 20 property markets where inventory levels and days on market had decreased over the past three months, with many of the markets seeing an increase in asking prices.
This is despite Sydney property values dropping 3 per cent since February and regional values starting to slip with economists forecasting even greater falls over the coming 18 months.
The list included eight metropolitan and 12 regional suburbs comprising 13 houses and seven unit markets.
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The unit market of Seven Hills in Sydney’s west topped the list, with inventory levels dropping 74.8 per cent and days on market falling 9.8 per cent to 46.
The median asking price in the three months to July went up 0.8 percent to $640,000.
The house market of Cabramatta West also made the list, with the median asking price soaring 7 per cent in three months to $1,150,000 after a 56.8 per cent drop in inventory levels and a 3.6 per cent decline in days on the market.
The south coast town of Pambula was a standout regional performer with median asking prices for housing soaring 21 percent from $620,000 in April to $750,000 in July.
Days on market almost halved from 62 to 35 during this time.
Terabla in the Lake Macquarie region experienced a 9.4 percent increase in median asking prices for houses, with values growing from $832,000 to $910,000.
Well Money CEO Scott Spencer said conditions in each of the listed markets were in favor of sellers.
“As a result, vendors have increased asking prices in most of the suburbs, despite the fact
the market is cooling in many parts of New South Wales,” he said.
“The suburbs in this report look set to grow in the coming months. That’s because demand is currently higher than supply, which means buyers are being forced to compete hard. That sort of competitive tension is likely to generate increases in selling prices.”
He said a drop in inventory levels indicated there was less property to choose from while a fall in days on the market meant demand had increased relative to supply.
“It’s a clear sign that market forces are moving in favor of vendors,” he said.
Top 20 ranking
|Rank||Suburb||Type||Median asking price||Change in inventory (%)||Change in days on market (%)||Change in median asking price (%)|
Source: Well Money Green Shoots Report.
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