Listings for properties in Sydney have surged, taking pressure off buyers who were suffering from FOMO (fear of missing out).
And less competition often leads to lower prices. Domain research shows property listings last month increased by more than two thirds since lockdowns in some pockets around the country.
In Sydney, the Parramatta region has seen one of the biggest jumps with the number of homes hitting the market up 88 per cent in November compared to September.
New listings in the Blacktown region and the inner south-west were also more than two thirds higher last month than they were in September, Domain found.
Even more exclusive markets like Sydney’s north shore and northern beaches saw a boost of 6 per cent and 11 per cent respectively.
However it's not good news everywhere with listings in Sydney’s eastern suburbs down 2 per cent last month.
Domain senior research analyst Nicola Powell said the outlook was looking positive for buyers next year.
“Buying opportunities are looking brighter for 2022. With new listings to remain strong, particularly over late summer and early autumn,” she said.
“This will continue to bring the total homes for sale into a ‘normal realm’. This additional choice, as well as tighter lending reducing buyers’ leverage and wages growth not keeping pace with 2021 price growth, mean prices won’t rise at the same sweltering pace as in 2021.”
2022 property outlook
While the transition from spring to summer normally brings a dip in buyer demand, the surge in the property market was delayed by lockdowns this year.
So, strong activity in the property market is expected to continue throughout summer to start 2022 with a kick, Powell said.
However, affordability issues caused by the massive 22 per cent rise in house prices this year is expected to put pressure on property prices.
Australia's big four banks agree that prices are expected to slow next year, paving the way for a correction in the property market in 2023.