Invest
Property sales volumes soar in 2021
Home sales volumes are over 30 per cent higher than they were a year ago, with new supply set to boost activity further in the coming months.
Property sales volumes soar in 2021
Home sales volumes are over 30 per cent higher than they were a year ago, with new supply set to boost activity further in the coming months.
Over the first 11 weeks of 2021, sales activity has increased by 33.2 per cent compared with the same period last year, new research by the REA Group has revealed.
In most states, volumes are more than 30 per cent higher than they were a year ago, with the Northern Territory well ahead of the pack at 78 per cent.
Next in line was Western Australia with 47 per cent, Queensland with 39 per cent and Victoria with 35 per cent. In fact, last in line and well below the pack was Tasmania with sales activity up a slim 11 per cent in the first 11 weeks of 2021 compared with the same period last year.
But despite a strong start, transaction volumes show no signs of slowing down, with last week’s figure trumping that of a year ago by 41 per cent, indicating that activity has returned much earlier and stronger this year than last.
And despite an expected increase in new supply, REA is predicting transaction activity to remain strong over the coming weeks, on the back of record-low borrowing costs.
Moreover, REA pointed to a decline in days on market, with properties generally selling quicker than they were a year ago.
According to the property group, as of February 2021, the typical property that was sold had been listed for sale on realestate.com.au for 48 days compared with the 71-day peak in June 2020 and 52 days in February last year.
Higher-priced property appeal rises
Other interesting trends that emerged in REA’s new report include an increasing preference among buyers for higher-priced properties.
Namely, in February 2020, 16.5 per cent of capital city searches were under $500,000; 46.8 per cent were between $500,000 and $1 million; and 36.8 per cent were over $1 million. By comparison, in February 2021, 13.0 per cent were under $500,000; 46.2 per cent were between $500,000 and $1 million; and 40.8 per cent were over $1 million.
In the non-capital city markets, searches under $500,000 accounted for 34.2 per cent of searches in 2020 versus 26.7 per cent in 2021; searches between $500,000 and $1 million accounted for 51.2 per cent in 2020 and 52.2 per cent in 2021, while searches over $1 million accounted for 14.5 per cent of searches in 2020 compared with 21.1 per cent in 2020.
But while more expensive properties are drawing high attention, there has been relatively minimal change in the property configuration buyers are looking for, according to REA.
In fact, across the capital cities, there has been negligent change in search behaviour over the year, with a slight increase in searches for properties with at least three bedrooms. In regional markets, it is a similar story, with most searches for two and three-bedroom properties, and minimal changes or declines in searches for other property types.
About the author
About the author
Property
3 in 4 borrowers in trouble are in lockdown: ANZ
Despite offering support, ANZ said freezing home loan repayments will be the last resort, as three in four requests for support stem from NSW. ...Read more
Property
RBA gives APRA’s use of macro tools a tick of approval
Ahead of an expected move to impose tougher lending rules on the banks, the Reserve Bank has looked into previous attempts by APRA to cool the housing market. ...Read more
Property
Federal incentives are driving more first home buyers into the market
While property prices continue to grow, new research suggests that the government’s current crop of first home buyer incentives is having an impact on this segment of the market. ...Read more
Property
Why it now costs 130% more to service a mortgage than 3 decades ago
The lifetime cost of owning a home has increased by over 130 per cent in just three decades, new research has revealed. ...Read more
Property
Using the 30/30/3 rule for home buying during uncertain times
Thinking of buying a home? Uncertain economic times may have you double guessing your purchase, but the 30/30/3 rule can help you make this a reality. ...Read more
Property
Rental yields reach decade high, but not all markets move at the same pace
Changing consumer preferences towards lifestyle destinations and a lack of supply have led to record national price growth, albeit price fluctuations vary region-to-region, fresh figures show. ...Read more
Property
What younger Australians are getting wrong about home loans
As young Australians look to fight the odds and take their first step onto the property ladder, more and more are making easy mistakes. ...Read more
Property
More than 1 in 3 Aussie properties are cheaper to buy than rent
Having a mortgage is even more likely to be cheaper than renting than it was pre-pandemic, new research has revealed. ...Read more
The Olympic effect on property and equity investors; COVID-19 Disaster Payments and super
Listen now
Do lockdowns boost property prices? Are short-sellers levelling the playing field? Did you lodge your tax returns early?
Listen now
Will lockdowns halt the housing boom? Is the metaverse taking over? And the cons of lodging your tax returns early
Listen now
Are you being priced out of the market? Have you got the Tuesday blues? And are you ready for the upcoming super changes?
Listen now
Property
3 in 4 borrowers in trouble are in lockdown: ANZ
Despite offering support, ANZ said freezing home loan repayments will be the last resort, as three in four requests for support stem from NSW. ...Read more
Property
RBA gives APRA’s use of macro tools a tick of approval
Ahead of an expected move to impose tougher lending rules on the banks, the Reserve Bank has looked into previous attempts by APRA to cool the housing market. ...Read more
Property
Federal incentives are driving more first home buyers into the market
While property prices continue to grow, new research suggests that the government’s current crop of first home buyer incentives is having an impact on this segment of the market. ...Read more
Property
Why it now costs 130% more to service a mortgage than 3 decades ago
The lifetime cost of owning a home has increased by over 130 per cent in just three decades, new research has revealed. ...Read more
Property
Using the 30/30/3 rule for home buying during uncertain times
Thinking of buying a home? Uncertain economic times may have you double guessing your purchase, but the 30/30/3 rule can help you make this a reality. ...Read more
Property
Rental yields reach decade high, but not all markets move at the same pace
Changing consumer preferences towards lifestyle destinations and a lack of supply have led to record national price growth, albeit price fluctuations vary region-to-region, fresh figures show. ...Read more
Property
What younger Australians are getting wrong about home loans
As young Australians look to fight the odds and take their first step onto the property ladder, more and more are making easy mistakes. ...Read more
Property
More than 1 in 3 Aussie properties are cheaper to buy than rent
Having a mortgage is even more likely to be cheaper than renting than it was pre-pandemic, new research has revealed. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
