The pandemic has resulted in a record year of housing market spending, with Sydney residents spending more money on homes and units in 2020 than they did in the year before the coronavirus.
Preliminary sales figures showed nearly $ 95 billion changed hands in the New South Wales housing market in the year to November – roughly the same amount spent on l public real estate over the whole of 2019.
The increase coincided with an increase in spending in both the NSW area and Sydney, according to data from realestate.com.au.
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With many December selling results yet to be reported, and agents are reporting an unusually busy year-end auction run, real estate analysts have said real estate spending in 2020 is expected to eclipse deals in 2019.
CoreLogic data showed that NSW’s total sales value in the year through September was already nearly 19% higher than the same period in 2019, while in Sydney it was 20%. % higher.
Domestic sales also increased, with nearly $ 285 billion spent across the country, an increase of 10.3% from the same period in 2019.
CoreLogic’s research director, Tim Lawless, noted that the value of NSW deals in the year to September was the most real estate spend since 2017.
Mr Lawless attributed the significant expense to a 13% increase in NSW transactions for the year, while prices were around 4% higher on average.
“As the recovery in housing market conditions gains momentum, it is very likely that home values and selling activity will end the year even higher … (and) set new records next year, ”Lawless said.
Realestate.com.au chief economist Nerida Conisbee said the increase in time spent at home during the pandemic may have been a factor in the spike in spending this year, as it encouraged families to come forward. growth plans.
With international travel and many entertainment options banned this year, families were also saving more money – much of which was spent on deposits for homes, Ms Conisbee said.
Various stimulus measures, such as stamp duty discounts and subsidies for new purchases, have given the market an additional boost by encouraging early buyers, she said.
“There was a lot of good news for buyers, especially in November, and the market has been doing very well since,” Ms. Conisbee said.
Affluent suburbs were among the strongest markets. The largest single market for homebuyers was Mosman, where more than $ 1.5 billion in homes and units sold over the year through November, according to CoreLogic.
Manly was the most popular unit market with $ 504 million in total apartment sales, followed by Dee Why, Cronulla and Randwick.
The Ryde region and northern coastal areas such as the northern beaches and the central coast accounted for most of the suburbs with the biggest rise in house prices of the year.
This included the suburb of East Ryde, which saw the largest annual increase in house prices of any Sydney suburb, at 19.2%.
Other suburbs where prices rose by more than 16%, more than double the city average, included North Ryde, West Ryde, North Narrabeen and Newport, as well as Davistown on the central coast.
Adrian William’s agent Adrian Tsavalas said refurbished homes with rear space often sold for record prices.
This was because families and upsizers were the dominant buying group and few large houses were offered for sale, ”he said.
“One bedroom units are the opposite: they are difficult to sell because there is a lot to sell and no investor to buy them,” Tsavalas said.
Rachelle Johnston recently listed her home in Darlington and was pleasantly surprised with the outcome.
“We had conservative expectations,” she said. “We were surprised by the number of buyers during (inspections) and ultimately we were very happy with the price. We got the same result that we would have expected before COVID.”
Ms Johnston said she encountered stiff competition in her search for a new, larger home.
“It felt like we were dealing with a lot of buyers, especially for the renovated properties.”
David Anderson recently sold his Ryde house and got about $ 100,000 more than he considered a dream price.
“We saw neighboring properties get good prices and thought it was better to sell now,” said Mr. Anderson. “We will see how the market behaves before we buy.”
Originally posted under the title How COVID Caused Shoppers to Spend More