JULY 2021 PROPERTY MARKET AND THE DELTA EFFECT
July's 2021 Auction Clearance rate was 70.5 percent, the lowest monthly result since November 2020.
It was a month of strict lockdowns, and bans on onsite auction, which resulted in
-a record number of buyers securing a home prior to auction and
-a large number of sellers opted to postpone or withdraw auctions.
Prior to escalated restrictions, Sydney was set for the busiest July on record. However, because sellers opted to postpone or withdraw auctions, the busiest July on record didn’t eventuate for Sydney
Potential regulatory action and lockdowns due to the new Delta strain is expected to take some heat out of the property market.
With Sydney house prices up 15.1 percent in just five months this year, Banks and Economists are predicting that the rapid pace of Australian house price growth will slow by the end of the year, as affordability pressures increase, and more homes are offered for sale in the last quarter of 2021
Part of the reason listings have remained low through lockdown conditions in June/July 2021 is the assistance offered to homeowners seeing hardship through COVID-19.
Mortgage repayment deferrals and household income support have kept distressed sales from hitting the market, and have more broadly been a factor in keeping housing market conditions stable.
Will prices drop in 2021-2022?
Whilst the full impact of the Delta lockdown on reducing property prices remains to be determined, what we know is that when house prices fall in Sydney, they don't fall too much.
Real estate agents, buyers and sellers have become more accustomed to virtual inspections and auctions. Requests for virtual inspections have risen and one-on-one private inspections are still allowed, providing an element of business as usual