Record demand continues to increase and supply of residential properties is not keeping up
When ever we consider the principal of Supply vs Demand we know that when demand outstrips supply of any commodity, the price of that commodity increases … and property right now is proving this correct.
Buyer demand exceeds record levels and with a smaller choice buyers will pay more for something suitable resulting in a continued Sellers Market.
August REA Insights Housing Market Indicators Report demonstrates current demand based on the number of views per listing of properties for sale on realestate.com.au, hitting all time highs in August, ahead of the spring selling season and in locked-down markets too.
Stock is limited and there is an incredible disconnect between supply of stock for sale and increasing buyer demand – the predicted result is a further increase in prices. This trend continues to create difficult conditions for buyers, especially those who are unable to control their FOMO and will pay more just to secure that property they are after. This is occurring across Australia.
There has been a 21% increase in national property prices over the past 12 month to August with no evidence that this is slowing down.
Buyers are scrambling to buy what ever they can.
Further exacerbating the increasing problem, lock downs have vendors nervous and have forced many a property off the market waiting for their city to open up again so that they can get more people through their door and a higher sale price.
This ongoing reduction in the volume of stock available on the market for sale coupled with increased search volumes is resulting in higher levels of interest from buyers (47% higher interests per property compared to the same time last year); a trend predicted to continue into Australia’s infamous Spring season. Nothing has dampened buyer interest … prices will rise again according to market analysts.
Only in Vic and ACT did demand based on viewing per listing drop, the rest of Australia continues to increase according to August report by REA but still above prior historical levels meaning demand for property is exceptionally strong Australia wide and supply extraordinarily low.