Homeowners choosing to rise out economic uncertainty before listing

Only a quarter of homeowners considering selling their home actually list on the market, according to new research by REA Gorup, with most worried about uncertainty and costs.

Sydney sellers Sara Perry and Karl Anthony at their renovated Quakers Hill home. John Feder/The Australian.

A lack of confidence is leading to fewer homes being put up for sale, with about three-quarters of homeowners who have considered selling deciding to bide their time.

A survey of 6400 homeowners conducted by REA Group has ­revealed that of this group, a third are feeling uncertain about market conditions.

One in five people said they were either concerned about finding their next home in their price range, the associated costs that come with selling, including agent fees and stamp duty, and co-ordinating the sale of their home and the next purchase.

After a dozen interest rate rises over the past year, REA Group’s chief strategy officer, Henry Ruiz, said it is understandable that homeowners were nervous.

“That’s resulted in people ­having a level of market uncertainty, which ultimately leads to vendors being hesitant to list property,” he said.

The low number of homes being offered for sale has been an issue over the past year, with the number of buyers outnumbing listings. The dynamic has aided the surprising rise in property ­prices through the first five months of 2023.

PropTrack director of economic research Cameron Kusher said a recent pick-up in sales had not been matched with an equal uplift in listings.

“(Listings would rise if) there was more certainty on things,” Mr Kusher said. “Potentially if interest rates stopped moving – or more financial hardship could trigger more listings. Also, if sales volumes remain elevated, then more people might need to or might be willing to put properties on the market because they know they can sell.”

To help alleviate some selling pain, REA hopes its new website, Property.com.au, will help inform buyers and sellers through the transaction process. Mr Ruiz said the site offered real-time data and economic insights. It also has a free telephone “property coach” service, which can help connect people to the right mortgage ­broker or real estate agent.

“Its goal is to provide the full picture on every property. This is now beginning to tap into other areas or information that is available on the web or offline and bring it together in one place that provides Australians insights and data on more than 10.5 million properties,” he said.

Sydney sellers Sara Perry and Karl Anthony, both in their 30s, hope the lack of sellers is a good thing for them. They listed their renovated home in Quakers Hill, in western Sydney, last week and have already 72 hopeful buyers through the doors.

“At the start of the year, there was a quiet point in real estate,” said Ms Perry, a real estate agent at Ray White Castle Hill.

“We are taking our own advice because the supply and demand scale is completely tipped at the moment.”

Ms Perry, who is selling through colleague Kael Sharp, added she was unsurprised would-be sellers were being ­deterred by costs, with many choosing off-market deals.

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