Are you curious about how supply and demand influence the property market? Whether you’re looking to buy or sell, understanding these dynamics can make a significant difference in your real estate journey. At Marriott Lane, we believe in providing you with valuable insights to help you make informed decisions.
The ins and outs of supply and demand
Supply and demand are essential forces that shape the property market. The interplay between these factors determines the property’s price and availability, ultimately influencing your buying and selling experience.
Low supply, high demand
When the number of available properties is limited, demand tends to rise. For example, in areas like Crows Nest and Wollstonecraft, where only approximately 16 and 17 properties are on the market, respectively, the demand is higher due to scarcity. However, when the number of available properties increases to 30-40, the market dynamic changes.
Time on the market
The average number of days a property spends on the market is a key indicator of demand. At Marriott Lane, our average listing stays on the market for just 34 days, a relatively low figure, indicating strong demand for our properties.
Auction clearance rates
Auction clearance rates are another critical aspect to consider. As of 22 July 2023, the auction clearance rate for Sydney properties was 69%, illustrating the level of competition and demand in the market.
Rental vacancy rate
The rental vacancy rate plays a significant role in shaping the property market. With a rental vacancy rate currently below 1% for one- and two-bedroom units, more people are opting to buy rather than rent due to the limited rental property availability.
Navigating the market: pros and cons
As a property owner or buyer, understanding the different market seasons can help you make strategic decisions:
Spring and Autumn sales
Selling during spring or autumn might mean facing increased competition as more properties flood the market. This abundance of options can drive prices down. However, if you are also buying, this time offers a wider selection to choose from.
The winter advantage
Contrary to popular belief, winter can be a hidden gem for sellers. With lower supply during this “off” season, the demand for properties increases, leading to stronger sales prices. As a buyer, this might require a bit of patience, but it also means less competition for your dream home.
We’re Here to Help
As you venture into the property market, understanding the dynamics of supply and demand is essential in navigating the property market. The interplay between these factors can significantly impact property prices, availability, and your overall buying or selling experience. As you embark on your property journey, remember that knowledge is power, and with Marriott Lane by your side, you can make well-informed choices.