Sydney sellers have become more active lately, with new listing numbers rising by 17 per cent as of mid-July, compared with the same time a year ago, according to CoreLogic RP Data. 

Around 21,300 properties are currently being advertised across Sydney overall, representing a 13 per cent increase on a year ago. Indeed, Sydney’s advertised stock levels are now higher than they have been over the preceding three years, says CoreLogic RP Data. 

This is notable because your chances of buying a home in the city typically depend on the supply of stock in relation to buyer demand. Sales listings tell us what's on the market right now, compared to an earlier time, and so can help define whether or not demand is rising.

We might assume, then, that buyers currently have more choice and can possibly approach the market with less urgency.

Chief executive of Propertybuyer.com.au, Rich Harvey, says it's easy to see the appeal of a large number of listings but that buyers have to stop short of a fast purchase simply because the market is weighted towards them.

"Despite how much pressure there might appear to be, you have some breathing room to make a great decision – more listings mean you can absolutely take your time,” says Harvey. 

"Of course, another aspect of high vendor listings is it can be hard to differentiate between two appealing properties. When you're scouring the market - or getting a buyers' agent to do it for you - think about the specifics of what you want.

"When you have a bit more time and a lot more to choose from, you can look a little deeper into what you really want out of a home." 

Quieter auctions

Meanwhile, recent auction figures for Sydney are down, perhaps presenting a further opportunity for buyers. For instance, of the 537 scheduled auctions during the last week of July, only 70 per cent were sold, says Australian Property Monitors, which is a lower number than we often see in Sydney. 

Keep in mind that in peak selling periods, the clearance rate often hits 75 per cent, and this can very quickly turn into 85 per cent one week later. The trend toward selling seems to almost spur more vendors into the market.

The clearance rate improved marginally to 71 per cent in the week to August 20, however volumes were lower week-on-week in Sydney, says CoreLogic RP Data. Perhaps a case of fewer options, less overall interest.
 
Of course, Sydney is a diverse market. While some properties aren't selling as promptly, large houses in premium suburbs tend to quickly disappear from listings. For instance, suburbs like Killara and St Ives in the north, and Strathfield in the inner west, all remain in high demand and multi-million dollar sales in those areas reflect this. 

Further from the city

Extending your property search 20km kilometres from the CBD, and in multiple directions, should lead to wider choice. For example, there were 86 auctions in the inner south-west of Sydney in the week ending August 6, with just 65 per cent of properties selling, according to CoreLogic RP Data. 
 
This rate of sale was much lower than in, say, the eastern suburbs, Hornsby, the northern beaches or in Ryde. So, while you might read about high numbers generally, there’s perhaps an opportunity in slightly less competitive segments of the city. Take Bankstown, for example, which has median prices on two and three bedroom houses of less than $1m, as per REA Group.
 
Units in Bankstown might be even more favourable for first-time buyers, with recent private treaty unit sales typically around the $500,000 mark. Last week, for instance, saw a two bedroom unit on Hixson Street sell for $475,000 and a two bedroom unit on Myrtle Road go for $430,000, according to REA Group. 
 
It seems in some pockets of the city at least, a higher supply has surpassed demand, which is good news for first homebuyers. In fact, the inner south-west is the largest focus of supply, accounting for about 45 per cent of apartments under construction, according to real estate services and management firm Jones Lang LaSalle.

Furthermore, some experts are now saying that unit construction will taper off over the coming years, so it’s worth keeping an eye on how prices on these properties will move.

By JP Pelosi.

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