19 February 2021|5 minute read
A landmark national study released by Aussie in partnership with CoreLogic shows property is selling faster now than it has in the past eight years, and reveals the top suburbs across metro, coastal, and rural areas around the country with buyer opportunity.
Aussie’s Buyers’ Opportunity Report reveals the number of properties listed for sale fell to a 10-year low and the median time on market is just 36 days.
The national report recorded the suburbs with a strong proportion of housing stock available for sale, which will typically favour buyers with a better opportunity to negotiate a competitive price.
CEO of Aussie, James Symond said, “While the market conditions over the last 12 months have triggered a surge in buyer demand, we’re also experiencing a 10-year low in property listings nationally; and when property is for sale, it’s generally getting snapped up quickly. But despite these trends, there are still significant buying opportunities out there for those who know where to look and are well prepared.”
The report shows that one in three Australian suburbs had at least 6 per cent of properties available for sale, and price growth remains stable nationally so, “there is no shortage of opportunities in the market for buyers who are ready and prepared to purchase,” according to Mr Symond.
Nationally, the number of homes for sale in December was 18.7 per cent lower than the same month in 2019 while the number of residential property sales finished the year 8.6 percent higher.
As a proportion of total housing stock, housing inventory reduced across every capital city and rest of state regions. Nationally, only 5.3 per cent of residential properties were listed for sale in 2020. Melbourne was an outlier for listing numbers late last year, with the number of homes for sale in December 13.3 percent higher than a year ago; the only capital city to record a rise in listing numbers compared with December 2019.
The drop in overall advertised stock levels has contributed some urgency to the housing market. At the end of 2020, homes were selling fastest in Hobart (25 days), and in Perth, where the market is emerging from a slump, property is selling in just 26 days, compared to the median 42 days in 2019. Across the other capital cities, the median time on market in 2020, was 29 days Melbourne, 33 days in Sydney, 37 days in Adeliade, 38 days in Brisbane and Canberra, and 54 days in Darwin.
“Homes are selling at quicker rates across Australia and buyers need to be prepared to act fast to secure a property, organising their financing and pre-approval for a loan through their mortgage broker,” he added.
The shortage of properties available to purchase saw vendors offering up less discounting from their initial asking price. Discounting rates, which measure the percentage difference between the initial asking price and the ultimate contract price on a property, reduced from a recent high of 4.5 percent in 2018, to 2.9 per cent in 2019, and 2.8 per cent in 2020.
The areas where discounting rates have reduced the most are generally the markets where housing market conditions are improving from a weaker position, such as Perth and Darwin, as well as regional Western Australia and regional Northern Territory where discount rates have reduced by more than one percentage point over the year.
According to Mr Symond, “Although advertised supply levels remain low and vendor discounting is trending lower, there are still plenty of suburbs around the country where buyers can find a great deal, particularly outside of the capital city centres.
“There may be less negotiation with vendors but potentially more negotiation with your home loan – so your dream home could be more affordable in other ways such as a competitive interest rate or a cashback incentive,” added Mr Symond.
He noted, “Buyer activity has been buoyed by a combination of record low interest rates, credit availability, Federal and State Government schemes and grants and rising confidence as economic conditions are currently beating forecasts.”
Mr Symond suggests those with serious intentions to buy within the next 12-18 months should start preparing now: “We are seeing longer application approval times due to pent up demand, and with homes averaging just 36 days on the market, if you’re not prepared, you might miss out on a place you really love.
“Everyone’s circumstances are different and there’s no one size fits all – so talk to a broker to understand your borrowing power, what government stimulus packages or lender offers you could qualify for to put you on the front foot. A broker can also help you secure your pre-approval, so you are in a position to put in an offer with confidence.
“In this historic low interest rate environment there has never been a better time to buy, however you need to be ready so that if you see it and love it, you can go for it, before it’s gone,” he concluded.
Aussie was founded in 1992 by John Symond and was widely credited for bringing competition to the Australian home lending industry. For nearly 30 years, Aussie Brokers have put progress within reach of more Australians, helping 1.5 million customers with their home loan. Today, Aussie has the largest retail footprint of any mortgage broker brand in Australia.