Coronavirus: Spring confidence bounce puts home sales through roof

Real estate agents have welcomed the late start to the spring selling season, which has proven much stronger than had been feared at the start of the pandemic.

Real estate agent Scott Thornton says a combination of the improved economic outlook and record low interest rates is driving the boom. Picture: Britta Campion

Real estate agents have welcomed the late start to the spring selling season, which has proven much stronger than had been feared at the start of the coronavirus pandemic.

Auction numbers are largely on a par with the same time last year in all capitals except Melbourne, which is quickly catching up. The recent Reserve Bank interest rate cut and improving virus control also caused consumer confidence to reach a yearly high this week.

The combination of factors is only adding to existing pent-up consumer demand.

Real estate network Ray White reported its record strongest month in October, notching up $5.71bn in sales, a 30.7 per cent increase year-on-year and 22 per cent higher than the previous record set in November last year.

Managing director Dan White said the result was unsurprising because buyer demand had been growing since May, with inquiry levels surpassing records set in 2018 and 2019 by mid-June.

“Interestingly, while some markets have outperformed, if we take a more generalised perspective, prices are holding rather than materially rising. This is an interesting dynamic that historically has been a positive indicator of sustained market activity.”

Mosman property partner at The Agency on Sydney’s north shore, Scott Thornton, said the market was buoyant, with talk of a coronavirus vaccine on the horizon likely to create even greater demand.

“There is still money out there,” Mr Thornton said. “It is a two-tier market. Looking at it, the restaurant industry is dire, people don’t want to spend eating out. But they are buying property; it’s a safer return. That’s why the market is building strength and confidence at the moment.”