Powered by momentummedia
nestegg logo
Powered by momentummedia
nestegg logo
nestegg logo

Invest

Property investors feeling a ‘sense of urgency’

By Cameron Micallef · November 29 2019
Reading:
egg

Invest

Property investors feeling a ‘sense of urgency’

By Cameron Micallef
November 29 2019
Reading:
egg
Sense of urgency

Property investors feeling a ‘sense of urgency’

author image
By Cameron Micallef · November 29 2019
Reading:
egg
Sense of urgency

Record-low property listings across Australia, coupled with more buyers entering the market, have increased competition among buyers, meaning they are paying more for properties.

According to CoreLogic, the number of residential advertised properties for sale this spring has been lower than last year across every capital, despite lower rates and ease of credit enticing buyers.

The number of new listings added to the national housing market through November was up 56 per cent from the quieter winter months, but compared with previous springs, it is at 2007 levels.

CoreLogic head of research Tim Lawless said “with buyers taking advantage of the lowest mortgage rates since at least the 1950s, along with an improvement in credit availability/borrowing capacity, market activity is rising.

“With such a small pool of stock available for sale, competition amongst buyers is increasing, adding a sense of urgency to the market, which is another factor supporting price growth at the moment.”

Advertisement
Advertisement

The largest drop in new listings numbers can be seen in Darwin, down almost 40 per cent compared with last year, while Hobart dropped 23.3 per cent Perth decreased by 23 per cent.

Total listing numbers were the lowest relative to a year ago in Sydney (down 23.1 per cent), Perth (down 16.1 per cent) and Melbourne (down 15.7 per cent).

“The low number of spring listings likely reflects a combination of factors,” Mr Lawless said.

“In markets where housing conditions have been weak, like Darwin and Perth, a lack of vendor confidence is understandable. Selling conditions have been tough in these markets since 2014 and prospective home sellers are likely wary of the challenging selling conditions, where homes are taking a long time to sell, discounting rates are high and properties are often selling for a lower amount than what they were purchased for.”

The lower numbers in Sydney and Melbourne are more surprising. Mr Lawless attributed this to overall lower consumer confidence in the economy and future household finances.

He cited another factor related to the speed of the market recovery.

“It was only five months ago that housing values were still broadly falling. Preparing a property for sale involves a number of processes that take some time, including making the decision to sell, finding an agent, preparing the home for sale and commencing a marketing campaign,” Mr Lawless said.

Taking this into consideration, Mr Lawless said if selling conditions remain strong through early summer, there could be a chance of the market being tested with a larger number of listings through early December or the first quarter of 2020.

Property investors feeling a ‘sense of urgency’
Sense of urgency
nestegg logo

Forward this article to a friend. Follow us on Linkedin. Join us on Facebook. Find us on Twitter for the latest updates
Rate the article
author image

About the author

Cameron is a journalist for Momentum Media's nestegg. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leveraging their insights to grow your portfolio.

Join the nestegg community

We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians

Your email address will be shared with nestegg and subject to our Privacy Policy

About the author

Cameron is a journalist for Momentum Media's nestegg. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leveraging their insights to grow your portfolio.

Join The Nest Egg community

We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians

Your email address will be shared with nestegg and subject to our Privacy Policy

From the web

Recommended by Spike Native Network

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.