Homes flying off market with record speed: REA

Properties were listed on realestate.com.au for a median time of 31 days before selling in October, according to REA Group’s PropTrack Housing Market Indicators Report for November.

Weekly sales volumes reached their highest level for 2021 at the end of October, up 14 per cent month-on-month. REA reported sales were materially higher for the period, compared to 2020 or in 2019, with cumulative sales 45 per cent higher than at the same time last year.

The group has reported historic high views per listing across Melbourne, Brisbane, Adelaide and Canberra, as well as nearly all regional areas.

Views per listing on realestate.com.au surged around 9.4 per cent in October month-on-month to reach a new historic high and are 46.4 per cent higher than the same time last year.

PropTrack economist Angus Moore stated eased restrictions and the spring selling season had supported strong activity in the property market during October.

“Indications of buyer demand show property seekers are extremely motivated, with search volumes reaching record-highs in mid-October,” Mr Moore said.

“High demand, combined with a lack of stock available for sale due to the impact of extended lockdowns, has created strong competition. Buyers are having to move quickly when they find a property they like.

“The median number of days on site – the amount of time a property is listed on realestate.com.au before selling – has reached its fastest level in five years.”

Search activity on realestate.com.au also continued to climb, up 1.9 per cent month-on-month.

In Victoria, searches were up by 8.6 per cent from the month before, while the ACT saw a 2.6 per cent jump.

Email inquiries to real estate agents also increased, up by 1.1 per cent month-on-month.

However, inquiries for units and land were both down, falling by 1 per cent and 4.2 per cent respectively – although they were more than triple the levels seen in January 2019.

Interest from first home buyers also came down from its peak in September, with inquiries down 2.4 per cent month-on-month.

Searches for properties with at least three bedrooms fell slightly over the last 12 months, but they accounted for 66.4 per cent of all filtered searches on realestate.com.au in capital cities.

Looking ahead, Mr Moore stated the surge in prices will likely start to ease, given the “benefits of lower mortgage rates are likely already baked into prices”.

“We’re also facing into some emerging, though distant, headwinds. The banking regulator APRA has tightened how banks conduct serviceability, which will reduce the maximum amount some buyers can borrow and the RBA has flagged that interest rate rises – while still a way off – may come a little sooner than previously expected,” he reflected.

“That said, these changes are likely to have only a small impact for now and we’d expect to see strong selling conditions continue through to the end of the year and into 2022.”

[Related: Property price growth continues to ease]