Property sales jump as market picks up speed

A third more homes have been sold over the year to date as buyer inquiries surge, new data shows.

Home sales have jumped 36 per cent through 2021. Picture: Julian Andrews

Home sales have increased by a third over the year to date as buyer inquiry surged, new data from Realestate.com.au shows.

The number of residential property sales rose 33.2 per cent over the first 11 weeks of 2021 compared to the same time last year, with most states up more than 30 per cent.

Not only are more properties being sold, they are moving at a faster rates The 41 per cent rise year-on-year rise in sales last week suggests transaction activity has returned much earlier and stronger this year than last. At the same time, properties listed for sale on the classifieds site were being snapped up within 48 days through February, compared to the 71 days at peak in June 2020 and 52 days this time last year.

REA Group director of economic research Cameron Kusher said unprecedented buyer demand had resulted in unseasonably strong transaction activity.

“With borrowing costs at historic lows, we would expect that transaction activity will remain strong over the coming weeks,” Mr Kusher said.

Historic low mortgage rates are expected to keep sales strong for the coming weeks. However, as increasing levels of new supply gives buyers more options, demand is expected to moderate.

“Buyer demand is likely to remain elevated given the unprecedented levels of search activity we are seeing, but we do expect that views per listing on realestate.com.au will moderate over the coming months as more stock becomes available and properties are listed for sale,” Mr Kusher said.

The number of visitors to Realeaste.com.au increasing by more than half on last year, which has primarily benefited demand for detached housing. Inquiry for houses (up 79.7 per cent) and vacant land (up 90.3 per cent) rising faster than that for units (up 51.5 per cent).

Mr Kusher said building demand generated by federal COVID stimulus has carried through the year.

“HomeBuilder has driven an increase in demand from first home buyers while tough rental market conditions due to the closure of international borders has led to relatively low growth in inquiry from investors,” he said.

“With HomeBuilder set to end at the end of March 2021, and investor inquiry rising, it will be interesting to see how these trends evolve over the remainder of this year.”

HomeBuilder drove an increase in demand from first home buyers, who have slowly been trickling out of the market in recent months due to the combined factors of successful purchases, rising prices and falling affordability. Meanwhile, investors are expected to return through 2021 after tough rental market conditions shut international borders saw their market share plummet to record lows last year.