Home buyers are snapping up properties fastest in more affordable Greater Western Sydney neighbourhoods, as well as sought-after inner west pockets.
While houses across Greater Sydney are taking longer to sell compared with this time last year, experts predict the gap will narrow as old stock starts to transact and the spring selling season kicks off.
Houses in St Marys in western Sydney spend about 33 days on the market, based on Domain data.Credit: Wolter Peeters
Houses in St Marys spend the least amount of time on the market at 33 days as of May, in line with a year ago, according to Domain data, as buyers seek affordability in areas further out.
The figures are similar in Campbelltown (39 days) and Mount Druitt (42).
Houses in the Marrickville, Sydenham and Petersham region are also among the fastest to sell, spending about 36 days on the market at the end of May, compared with 44 days at the same time a year ago.
Domain chief of research and economics Dr Nicola Powell said the data was driven by affordability.
“With the wide gap between house prices and the capacity to pay for a home, irrespective of the fact we’ve seen two rate cuts, those affordable locations like St Marys are really key in terms of driving those quick sales,” she said.
Houses in Pennant Hills and Epping were selling in 40 days a year ago, but now take 60, a 50.8 per cent leap. There were significant increases in Penrith (50 per cent), Leichhardt (40.3 per cent) and Liverpool (39.7 per cent).
Powell said days on market wasn’t necessarily as timely a market indicator as auction clearance rates.
“Those going to auction have a three-week marketing campaign, and the clearance rate is a good indication of that barometer between buyers and sellers,” she said.
“With days on market, you’ve always got a lag of stock, and probably what we’re starting to see is some of those homes that have been on the market for a longer period of time are now starting to transact.”
PRD Real Estate chief economist Dr Diaswati Mardiasmo attributed lower days on market in Greater Western Sydney suburbs to low stock and improved buyer sentiment following two rate cuts.
“People are feeling better about the economy and want to purchase now before the cash rate gets even lower,” she said. “More buyers will push up prices, so they want to get in now.”
Houses in North Sydney and Mosman spend longer on the market, a median of 89 days.Credit: Domain
Mardiasmo said the western suburbs were a popular choice for first home buyers.
“They want affordability. They have been waiting in the wings and now want to get in the market. Those outer fringe suburbs are a playground for first home buyers.”
Houses that spend the longest days on market are in more affluent regions such as Hawkesbury (116), Pittwater (111), North Sydney and Mosman (89), and the northern part of the eastern suburbs (81).
Ray White United Group’s Amber Boumelhem said houses in St Marys typically sold within one to four weeks.
“If properties are on the market for longer, it’s a concern,” she said. “It’s either down to the property itself or unrealistic price expectations.”
Boumelhem said the Western Sydney Airport and a future Metro stop made the suburb attractive to investors. Block sizes were about 600 square metres.
She said first home buyers wanted to buy something just to get in the market.
“With the likelihood of a further rate cut, there will be more buyers. They will be more comfortable entering into a loan, especially with lower repayments,” she said.
Steven and Nikki Bradley have listed their three-bedroom house in Petersham for $2.64 million, in a suburb where houses spend about 36 days on the market.
Steven and Nikki Bradley have listed their home in Petersham, a suburb where houses are among the fastest to sell.Credit: Edwina Pickles
Nikki said the locals considered the couple to be newcomers despite having lived there for 24 years.
“There’s not a high turnover. Some of our neighbours have lived in their homes for 56 years plus, so at 24 years, we would be considered some of the newer people,” said Nikki, a social media executive.
At the time of publication, there were only eight other homes in Petersham publicly listed for sale.
The property was once a boarding house that the couple extensively renovated, replacing the fireplaces, cornices, ceilings and floors.
“When we bought the house in our early 20s, it was the worst house on the best street,” said Steven, an Adobe executive.
Petersham is tightly held, so much so that Steven and Nikki are considered newcomers despite having lived there for 24 years.Credit: Edwina Pickles
Their agent, Shad Hassen of The Agency, said Petersham was not a large suburb, that it had a low volume of houses and hadn’t been in the limelight compared with other inner-west suburbs.
“It’s a bit of a sleeping giant, but with houses selling on average for $2.3 million, it’s slightly more affordable,” he said.