Market not slowing down as homes sell at record speeds

Australia’s booming property market is showing no signs of slowing down, with houses selling at record speeds in all states, amid surging buyer demand.

The latest realestate.com.au ‘Insights Housing Market Indicators Report’ predicts sales volumes, which have jumped almost 40% so far this year, will continue to rise in 2021, as more properties are put up for sale.

Economist Anne Flaherty said demand remains strong with views per listing at record highs and days on the site at record lows.

  
Picture: Tom Rumble

 “Australia’s property market shows no signs of slowing in 2021,” Ms Flaherty said.

“The low cost of debt, combined with an unprecedented level of government support, has seen buyer activity surge this year.”

Ms Flaherty said with interest rates at record lows, buyers are searching for more expensive properties this year, as well as more space.

The average number of days properties are listed for sale on realestate.com.au hit a record low in every state and territory in March.

Properties sold the fastest in the ACT, with an average of 25 days on site.

 
Picture: realestate.com.au/buy

NSW was next with an average of 27 days, followed by Victoria on 30 days.

Properties in Western Australia and the Northern Territory typically took the longest time to sell, averaging 71 and 59 days on site respectively. But WA and the NT have also experienced the largest declines, falling by 28 and 14 days respectively since March 2020.

The average days on site in Queensland fell to 54 days in March, while in South Australia it was down to 48 days and Tasmania 37 days.

The national average remained at 48 days in March, after hitting the usual January seasonal peak of 62 days.

The national average days on site has been trending lower since reaching 71 days in June 2020, having initially increased as a result of coronavirus lockdowns and restrictions from March last year.

The report showed the number of property transactions increased by 39.8% during the first quarter of 2021, compared to the same period last year.

NT and WA experienced the largest increases in properties sold, up by 68.8% and 48.8% respectively in the first 14 weeks of 2021, compared to the previous corresponding period.

Ms Flaherty noted that there is typically an increase in the number of listings brought to market over the second half of the year which, combined with strong demand, would likely drive further growth in sales activity.

“Transactions are trending upwards and will likely keep rising as more listings are brought to market over the remainder of 2021,” she said.

With buyer demand remaining strong, average views per listing of properties for sale on realestate.com.au hit record highs in every state and territory in March.

Nationally, views per listing were up 6.1% in the month and by 106.8% year-on-year.

“This growth can be attributed to several factors, including record low borrowing costs, government support packages for first–home buyers and limited available stock,” Ms Flaherty said. 

“This is particularly evident in Tasmania, where the shortage of stock has driven average views per listing higher compared to the other states.”

Compared to March 2020, Queensland had the strongest growth in views per listing (up 127.4%), followed by NSW (116.1%) and WA (109.5%).

“Listings are expected to pick up over the remainder of the year, which should help to alleviate supply constraints and may contribute to a decline in views per listing over time,” Ms Flaherty said.

 
Picture: realestate.com.au/buy

The report showed buyer search volumes on realestate.com.au increased by 62.7% year-on-year, which was due in part to the impact of the introduction of COVID-19 restrictions in March 2020.

“Buoyed by low rates, buyers are searching for more expensive properties than they were a year ago,” Ms Flaherty said.

“They are also looking for more space, with enquiries for houses and land surging, while demand for units has softened.”

Searches for properties in the $1 million-plus range have increased over the past year, now accounting for 42.3% of all searches, compared to 36.2% in the prior year.

Properties in the $1 million to $1.5 million range had the largest growth, both in capital cities and regional areas.

Ms Flaherty said there has been a significant drop in searches to buy properties listed for less than $500,000.

The $500,000 to $750,000 level remained the most popular price filter, although the category’s share of total searches has fallen to 23.1%.

Ms Flaherty said buyers looking to purchase in regional areas are searching for more affordable properties, with 57% of all searches in the sub-$750,000 range, compared with 35.7% in capital cities. 

Originally published on realestate.com.au under ‘Market not slowing down as homes sell at record speeds: new report’