FOMO set to strengthen Sydney market

Data collected across the Raine & Horne group suggests that Sydney’s property market – which has seen four months of growth – could continue to perform strongly until Christmas, according to the group’s executive chairman, Angus Raine.

“It will only take a few positive sales, and then the fear of missing out will tempt more mum and dad buyers into Sydney’s property markets,” Mr Raine said.

“Fear of missing out (FOMO) activity will drive strong activity in Sydney up to 21 December, which is the last Saturday before Christmas,” Mr Raine said.

Mr Raine added that the ongoing strengthening of buyer demand within the Sydney market will push the market back in the favour of sellers.

“There are more buyers at open homes, yet our listings in NSW in September were 13 per cent lower than the same month last year. We’re now moving towards a seller’s market,” he said.

Raine & Horne recorded very similar trends to those already experienced across Australian markets, including increasing buyer demand, strong auction clearance rates, and investors returning to the market in light of interest rate cuts, and particularly, a strengthening market in Sydney.

Raine & Horne Newtown director Duncan Gordan stated that Sydney’s Inner West continues to have buyers’ attention, with enquires and auction clearance rates up from last year.

“There is certainly a buzz out in the marketplace, with many buyers keen to secure a home before the end of the spring selling season,” Mr Gordan said.

“During the first half of 2019, investors were few and far between. However, in the last quarter, we have seen them return in droves, and they are giving owner-occupiers some stiff competition,” Mr Gordan said.

“As a consequence of [a] combination of factors, investors feel the time is right to buy to capitalise on future capital growth.”

He stated that competition between investors, owner-occupiers and first home buyers, coupled with a dwindling supply of properties on the market, has contributed to increasing prices across the city.

“The increase in volume that many buyers were hoping for has not come to fruition yet, and this is continuing to put upward pressure on prices,” he said.

“For those contemplating a sale, you still have plenty of time before Christmas, and the current buoyant market conditions are there to be taken advantage of by vendors.”

A similar sentiment was shared by Raine & Horne Maroubra principal Paul Spanoudakis, who stated that buyer enquiries for his office are up 50 per cent compared to spring 2018.

“Yet the number of properties available for sale is 30 per cent lower.

“The demand for property is also demonstrated by our auction clearance rates of 80 per cent in September with 5-10 bidders regularly registered for every auction,” he said. 

[Related: Auction clearance rates hold steady]