John's Property Market Update

Brought to you by InfoTrack

John's Property Market Update

Brought to you by InfoTrack

John Ahern, InfoTrack’s CEO has just released the hottest spring property market data and this is what was uncovered. 

84% of first home buyers purchase pre-existing properties.

Over the last 12 months, 47% of NSW First Home Buyers are looking for free-standing homes to live in, and 37% are looking for strata properties like townhouses and apartments to buy and live in.  

Only 15% are purchasing vacant land. The construction freeze in September, the limited availability of building materials and the restricted movement of tradespeople during lockdown is likely fueling this reduced desire for building on vacant land. 

First Home Buyer activity is plateauing

The property boom is impacting First Home Buyers as other buyers and investors are coming back into the market, creating more competition and driving up prices.  

Hot first home buyer suburbs are dropping in popularity

In the last two months, suburbs like Marsden Park and Austral are dropping in popularity. This is likely due to the post-COVID spring market seeing the average purchase price in these previously hot suburbs moving upwards. 

The majority of NSW First Home Buyers prefer to avoid stamp duty costs

Savvy first home buyers consider paying between $600,000 and $700,000 for their first home.  

The First Home Buyer Assistance Scheme allows first-time purchasers to avoid paying stamp duty when they buy either a new or existing home valued at less than $650,000. When buying a home priced between $650,000 and $800,000 they can apply for a concessional transfer duty rate, which will be based on the value of the property. 

The majority of NSW First Home Buyers are choosing to purchase alone

Over the past 12 months, 55% of First Home Buyers made their property purchase alone, or only listed one name on the title. This reflects the possibility that there are more individuals with higher disposable incomes who can afford to buy their first home self-sufficiently 

Industry opinions on first home buyer activity

“What I’m seeing in relation to first home buyer activity in today’s property market is that it’s at an all-time high, and I assume FOMO is the biggest driver.”

Tom Panos

Real Estate Influencer

"Since the start of the COVID-19 shutdowns occurring. …there was talk of significant decreases in market values across the sector, as much as 20-30%, but as we have seen quite the opposite has occurred."

Emanuel Oros

Property & Leasing Commercial Lawyer Partner - Sparke Helmore Lawyers

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Sources: The data in this report reflects conveyancing activity of property lawyers and conveyancers in NSW within InfoTrack’s platform. Median house prices domain.com.au