In Sydney this week there are 305 advertised auctions – a huge increase
from last week’s 187. What’s behind this? A mysterious phenomenon known
as the ‘free radical’ is changing its behaviour, and the market is
changing along with it.

What,
or who, is a ‘free radical’? It’s someone who lives in a home that’s
past its use-by date. Their home no longer suits the way they want to
live, and they’re on the lookout for something better. A free radical
could be a single person going stir crazy in a small apartment, a young
couple planning to have kids, or empty nesters who no longer want the
hassle of maintaining a rambling family home.

Once these people
get itchy feet, they put their property on the market. Auction numbers
start to climb, buyers come out of the shadows to inspect the wider
choice of stock, and the market is on its way.

The Real Estate
Institute of NSW says house sales rose 24% and unit sales rose
34% between the March and June quarters. This is a positive
sign, as it shows that vendor confidence is increasing.

As Australia’s largest city and the centre of our financial markets,
Sydney leads the nation in property market trends. When the Sydney
market moves, markets in other cities gain confidence and move with it.
When Sydney slows, other markets do too. As the second-largest city and
financial centre, Melbourne falls into line first, followed by
Brisbane, Perth and then the smaller capitals.