Follow the leader, pent up demand behind the rise of Sydney market: Ewan Morton

I’ve got a sneaky suspicion that what many people have worried might be a ‘bubble’ is actually just the pop of pent up demand.

Think about it. It’s an undeniable truth that in Australia, and particularly Sydney, we’re obsessed with the property market. In recent years that obsession hasn’t waned but, like a child desperate to ride a roller coaster, we have been too scared to jump on.

Now we’re a bit older and wiser. The potential ups and downs are not quite so scary and we’re ready to go.

But why such a significant spike in demand over recent months? Some might argue that it is in response to interest rates, others to the federal election and change of government fuelling traditional spring demand.

While I think all those factors have played a role the other key point that is often overlooked is the power of the positive trend. It could be a little unkind but you could see it as the ‘sheep factor’. I’m sure you know what I mean. Buyers and sellers don’t necessarily want to go first and test the market but once somebody has taken that plunge with a positive result nobody wants to miss out.

A couple of months ago I was calling for potential vendors to have faith and list their property because demand was there and supply was very low. It was worth it and continues to be worthwhile as demand has increased over and above supply.