NSW Property Market Inventory Analysis
The analysis of the property market inventory in New South Wales (NSW), with a focus on both houses and units in Greater Sydney and the rest of NSW, provides critical insights into the current real estate dynamics. In Greater Sydney, the inventory for houses remained below 3 months from February 2023 to January 2024, indicating a consistently tight market that favoured sellers, with slight fluctuations peaking at 4.19 months in October 2023 before tightening again. This trend suggests a strong demand relative to supply, maintaining upward pressure on house prices in the region.
Conversely, the inventory for units in Greater Sydney began above the 4-month mark and saw a notable increase, crossing into a buyers' market territory in September 2023 with a peak at 7.19 months in October 2023, before declining to 3.93 months by February 2024. This trajectory indicates a temporary shift towards more favourable conditions for buyers, potentially due to an increase in unit listings or a softening in demand, before reverting to a tighter market.
In the rest of NSW, both houses and units experienced an inventory level consistently above 4 months throughout the period, reaching a peak for houses at 6.80 months and for units at 6.26 months in October 2023. This suggests a more pronounced buyers' market outside of Greater Sydney, with potentially slower sales or higher listings contributing to this trend. However, by February 2024, there was a slight reduction in inventory levels, indicating a marginal tightening in these markets.
Overall, the data reflects a divergence between the markets in Greater Sydney and the rest of NSW, with the former showing signs of a more robust sellers' market for houses and fluctuating conditions for units, while the latter indicated more favourable conditions for buyers across both housing types. These trends are crucial for stakeholders in the real estate sector to understand, as they highlight regional variances and potential shifts in market dynamics.