By Graeme Salt
Properties are moving quicker and buyers are becoming increasingly realistic about price expectations
Research from REA Group shows the average number of days properties are listed for sale on realestate.com.au hit record lows in every state in March 2021.
The average days on the site was 48 in March 2021, down from an average of 71 days in June 2020.
Properties sold the fastest in the Australian Capital Territory (25 days), New South Wales (27 days) and Victoria (30 days) over March.
With demand outstripping supply, many purchasers are being realistic about expectations – the time to pick up a bargain was nine months ago.
According to the REA Group research (below), between March 2020 and March 2021 there has been a significant drop in searches to buy sub-$500,000 properties, both in capital cities and regional areas. The $500,000 to $750,000 category remains the most popular price filter, though searches at this level have fallen substantially below the proportion seen over the same time last year.
The low cost of debt and subsequent price rises have driven an increase in searches for properties in the $1 million-plus range which accounted for 42.3% of the share of searches over the past 12 months, up from 36.2% in the year prior. Properties in the $1 million to $1.5 million range saw the largest growth, both in capital cities and the regions
Exonomic’s commentator Pete Wargent shows below that loan sizes have increased by about 6 per cent over the past year.
In a hot market, it’s important not to panic – if you miss one property, another will come along.
Talk to your broker to ensure you have your finance pre-approved. While most see prices continue to rise, many also believe that they will not continue to do so at this pace – in a few months there may be less Fear of Missing Out.