Burning real estate boom: properties are selling at record speed

Homes are selling at record speed as Australia’s supercharged real estate boom continues, with buyers using cheap loans to purchase more expensive properties.

Australian residential properties are selling at record speeds while in short supply, with the average number of days homes listed on a popular website hit record highs in every state in March.

According to the latest monthly housing metrics report from realestate.com.au owner REA Group, homes were listed for 48 days on average last month, up from around 60 days in January and 71 days in June of the year. last.

The fastest selling properties in ACT – where demand has been supported by growth in public sector employment – just 25 days.

Closely followed was NSW (27 days) and Victoria (30 days).

The REA Group says the average number of views per ad has also increased, with each state setting records in March.

Nationally, ad views increased 6.1% on the month and 106.8% year-on-year.

Report author, economist Anne Flaherty, says the skyrocketing growth could be attributed to factors such as record borrowing costs, government support programs for first-time homebuyers, and stock on hand. limit.

“Driven by low rates, buyers are looking for more expensive properties than a year ago,” Ms. Flaherty said.

“They are also looking for more space, with demands for housing and an increase in land, while the demand for units has softened.”

The report suggests that trends are changing, with more listings expected to hit the market in the spring and fall, which are traditionally the most popular times of the year to sell, while investor activity steadily increases.

Investors accounted for nearly 17% of email inquiries on the website last month, up from 11% in a low in June, when first-time homebuyers’ inquiries peaked.

Ms Flaherty said first-time homebuyers’ demands tend to decline and are expected to continue to decline for the remainder of the year due to rising prices and reduced government support programs such as HomeBuilder and the First Home Loan Deposit Scheme.

The latest CoreLogic home value data released last week confirmed that Australia was in the midst of a housing boom, showing that domestic residential property prices jumped 2.8% last month – the highest rate in 32 years – to reach new records.

At the same time, data released by the Real Estate Institute of Australia showed that house prices had climbed more than 500% over the past 25 years, with the median price dropping from $ 160,000 in 1996 to $ 825,000. in 2020.

President Adrian Kelly also said investors were reappearing in response to a rising market, with new growth expectations and low borrowing costs.

But for tenants, the bad news continues to arrive, with the moratoriums on rental evictions caused by the pandemic ending last week and many landlords immediately raising rents.

In Perth, where the rental vacancy rate was just 1% in February, evicted tenants called affordable housing advocacy group ShelterWA for help in the thousands.

* The largest shareholder of REA Group is the owner of this stock, News Corp

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