Time it takes to sell house in Australia hit all time low for every state in March

Buyers are making quick offers to snap up properties, while people are increasing looking for homes above the $1 million mark.

Hungry buyers are snapping up homes at record speeds around Australia with many properties currently advertised on the market for less than a month.

Properties sold the fastest around the country in March, with homes in the Australian Capital Territory purchased after just 25 days, in NSW it was 27 days, while Victoria slid in at 30 days, according to research from Realestate.com.au.

Anne Flaherty, economist at REA, said it showed that buyers are recognising the need to make offers quickly to secure a house and that extremely high demand is resulting in the record speeds.

“There are two key factors driving demand – interest rates on home loans are really low at the moment and government packages like the HomeBuilder grant and the Home Loan Deposit Scheme have allowed many first home buyers to get a foot on the ladder,” she told news.com.au.

“Demand in the ACT is being driven by employment. Unemployment was lower in the ACT than any other state in February, at 4.1 per cent versus 5.8 per cent in Australia, and has been supported by strong jobs growth in the public sector.”

Properties in Western Australia and the Northern Territory typically took the longest time to sell, averaging 71 and 59 days on site. Despite this, the two cities have seen the largest falls in average time on site, down 28 and 14 days.

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It's a busy time for auctioneers and real estate agents as people scramble to secure a home. Picture: Annette Dew

More expensive properties becoming popular

Buyers are also looking to splash more cash when it comes to purchasing a property.

Between March 2020 and March this year 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, but the low cost of debt and subsequent price rises have driven an increase of search for properties in the $1 million plus range.

Properties in the $1 million to $1.5 million range saw the largest growth, both in capital cities and the regions, found REA.

“With interest rates at such low levels, the amount of debt a property buyer can service has gone up,” said Ms Flaherty.

“This has enabled many buyers to look for properties at a higher price point than they otherwise could have afforded.”

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But fewer people are looking to rent or buy an apartment. Picture: Gaye Gerard/NCA NewsWire

Bad news for units

Viewings of real estate listings have also reached record highs in March, with the strongest growth in Queensland of 127 per cent, followed by NSW at 116 per cent and WA with 109 per cent, as the available stock fails to meet demand.

“With the expectation that property prices have room to grow over the next few years, many owners who may previously brought their properties to the market to sell, may now be sitting tight,” Ms Flaherty said.

“This has the effect of dampening the supply of properties for sale, which in such a strong market, is driving views per listing up.”

But the news isn’t so good for unit owners — with a decline in buyer and renter interest.

“Units are typically closer to CBDs and universities. The drop in international students, and a reduction in the number of people commuting into CBD offices has subsequently led to a decrease in demand from renters. These areas have therefore seen vacancy rise and rents fall, and made owning apartments comparatively more risky,” she said.

“Another factor driving a decline in units is an increased demand for lifestyle and space, and less importance placed on being closer to workplaces.”