Sydney named “extreme seller’s market”

“Best-selling market” is no longer good enough to describe Sydney’s scorching hot market. It’s now known as the “extreme seller’s market”, according to a new report..

The latest Commonwealth Bank/CoreLogic Home Buyers Index (HBI) found that the number of new mortgages processed by CBA largely outpaced the number of properties advertised for sale in the city.

This means that if you’re planning to buy in Sydney you have practically no chance of negotiating down the price, as buyers compete for this limited supply.

Melbourne sellers also still hold the upper hand when it comes to negotiating a sale, according to the report.

On the opposite end of the spectrum, vendors in Tasmania are at the mercy of buyers with the report naming it the “extreme buyer’s market”, thanks to a large number of listings against the number of mortgage commitments.

CoreLogic RP Data senior research analyst Cameron Kusher said that despite the south-eastern seaboard capital cities move in favour of sellers, market conditions are generally balanced across Australia.

“Overall, the national property market is balanced between buyers and sellers; however, there are much more varied conditions across the states and capital cities,” he said.

“The report reveals that Sydney and Melbourne have moved further in favour of sellers, with buyers having much less negotiating power.”

The best opportunities for buyers were coastal suburbs or markets linked to the resources sector.

Commonwealth Bank home loans general manager Dan Higgins said Western Australia, Queensland, the Northern Territory and Tasmania have the best negotiating power.

“Particularly in the capital cities of Brisbane, Darwin and Hobart, so buyers in these regions may be able to drive a better deal on sale negotiations. However, we always recommend that home buyers research the market,” he said.

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Source: CoreLogic RP Data

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