Sydney's housing market is expected to be busy in the next few weeks until Christmas as buyers remain on the lookout for great deals, according to a report from Raine and Horne.
Homebuyers and investors remained "unusually" active in the market, seemingly indicating that they are developing a sense of fear of missing out (FOMO), said Raine and Horne executive chairman Angus Raine.
"Fear of missing out will drive strong activity in Sydney up to December 21, which is the last Saturday before Christmas," he said. "There are more buyers at open homes, yet our listings in NSW in September were 13% lower than the same month last year. We're now moving towards a seller's market."
Also read: Investors fuel housing gains in Sydney, Melbourne
Strong investor activity in inner-west
Sydney's inner-west appears to be witnessing a keen interest amongst buyers, particularly investors, said Raine and Horne-Newtown director Duncan Gordon.
"During the first half of 2019, investors were few and far between. However, in the last quarter, we have seen them return in droves. They are giving owner-occupiers some stiff competition," he told The Daily Telegraph.
Gordon said while several factors are boosting the presence of investors, the most significant drivers were the rate cuts.
"Investors feel the time is right to buy to capitalise on future capital growth," he said.
Also read: Railway project to boost Western Sydney
In July, investor lending grew at its fastest pace since September 2016, according to the latest figures from the Australian Bureau of Statistics.
Recent data from the Australian Bureau of Statistics show that lending commitments for investment dwellings grew by 5.7%, the most substantial month-on-month increase in almost three years. The growth was due to the increasing presence of new investors breaking into the market.
CoreLogic head of research Tim Lawless said that the improved prospects for capital gains will attract more investors to the housing market.
"Additionally, credit policies have loosened, and lenders are becoming more competitive for investment borrowers," he said.
Data from CoreLogic show that investment activity is concentrated in New South Wales, where investors comprise 31.2% of mortgage demand.
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