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The fear of missing out (FOMO) could see NSW-based buyers out in force all the way up until Christmas, according to a CEO.
Real Estate Institute of New South Wales (REINSW) CEO Tim McKibbin reiterated reports of the re-emergence of the FOMO trend in the lead-up to the holiday period, meaning that real estate agents should expect buyers to remain out in force right up until Christmas.
“We anticipate another busy week ahead as the market advances towards what we see as a shorter end-of-year break, activity-wise,” he commented.
It comes alongside small but steady month-on-month increases to median house price figures.
“Based on current buyer appetites and the shortage of available properties, we see this trend continuing through December,” the CEO said.
“The auction market remains strong, with numerous examples of reserve prices being surpassed with ease over the weekend. This should continue to shape the next few weeks.”
The CEO explained how government stimulus measures and low interest rates are supporting current levels of demand and giving vendors confidence that looks set to continue.
“According to the federal government, the extensions to the HomeBuilder grant announced last week will see an additional 15,000 homes built by March next year, on top of the 27,000 homes the scheme was already expected to create,” Mr McKibbin said.
“Of course, these are national figures and are, unfortunately, only a blip in the long-term systemic supply shortage plaguing the NSW market.
“This shortage will continue to colour the outlook for 2021. Assuming no unforeseen correction, we see prices maintaining a steady and sustainable rise, clearance rates to remain strong, and average days on market to remain stable.”
It led the CEO to consider supply as the missing ingredient to a holistic housing recovery on the other side of the pandemic.
ABOUT THE AUTHOR
Grace Ormsby
Grace is a journalist across Momentum property and investment brands. Grace joined Momentum Media in 2018, bringing with her a Bachelor of Laws and a Bachelor of Communication (Journalism) from the University of Newcastle. She’s passionate about delivering easy to digest information and content relevant to her key audiences and stakeholders.
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