Sydney stock levels offer opportunity

Successful property investors know that inventory can have a huge impact on markets, making it important for those considering a property investment in Sydney to keep track of how stock levels fluctuate.

According to SQM Research, December 2013 saw stock levels decline nationwide by 8.5 per cent on a month-over-month basis. Meanwhile, on an annual basis, stock levels fell 4.3 per cent.

While this activity was spread throughout the capital cities, it was felt most seriously in Sydney.

On a month-over-month basis, inventory levels fell 26.4 per cent in Sydney during December 2013. When compared to areas like Melbourne (-14.3 per cent) and Brisbane (-10.7 per cent), it's easy to see how significant this fall was.

Sydney also saw a considerable drop in stock on an annual basis, falling 19.6 per cent. The New South Wales capital city was only beat out by Darwin, which experienced a drop of 19.8 per cent.

Louis Christopher, managing director of SQM Research, attributed much of this decline on seasonal factors.

"There were some rather large declines in listings over December, however that is to be expected for this time of year given how the housing industry shuts down over Christmas and much of January," Mr Christopher said.

"Overall I see no evidence of any slowdown in the market itself with these numbers. We are confident of a very strong market opening later this month."

However, Mr Christopher also specifically highlighted the year-over-year drop in Sydney as something of note.

This type of market has much to offer current owners of real estate in the region, from granny flats to a luxury penthouse.

The Sydney property market is expected to pick up momentum from mid-January as agents return to work and vendors are in a position to list their properties for sale. The strong market activity that was evident last year is expected to continue and the early bird seeking to buy an property investment in Sydney will reap the rewards for early action. Prices are expected to rise but at a more moderated rate in 2014, according to most expert commentators.

Utilising a buyers agent in Sydney is a wise move for home buyers or investors seeking a property in an area where stock is limited and demand is high. Buyers agents can get advanced notice of new listings in areas of restricted supply.