Victorian homes are exiting the market faster than ever because “fear of missing out” prompts buyers to act quickly and expand their budgets.
According to a new report from realestate.com.au, typical properties sold only 28 days after listing last month hit a record low.
St. Andrews Beach houses are the fastest selling in the state, with a median of only eight days. According to separate data from realestate.com.au in May, the same property types were sold out in less than two weeks on the periphery of The Patch, Upper Ferntree Gully and Coldstream.
Nationwide, compared with May last year, the average residence time of houses on the market after the pandemic began was 62 days. In contrast, the number of days on sale nationwide reached a historical low of 32 days. point.
This month’s REA Insights Housing Market Indicators report also showed that due to record low interest rates and “high household savings”, more and more Australians are looking for properties worth more than $1 million.
Ray White Cheltenham director Kevin Chokshi said that Melbourne’s lockdown last year and the recent rapid lockdown instilled a “sense of urgency” for buyers.
“Continuous uncertainty is a little scary, but it also makes you scared to miss out,” Mr. Choksh said.
“The buyers who are looking for are not new either. They have been looking for and missed for months, and the blockade has exacerbated this situation.”
He said that demand has shortened sales activities and that eager buyers are 6/129 Park Road, Cheltenham, Before the scheduled auction.
“Before the blockade, we received interest between $790,000 and $850,000, and then someone came in and bought it for $1 million,” Mr. Choksh added.
“People have realized that the other option is to wait for more inventory to appear on the market, the price may rise more, or they can re-examine their budget and strategy to ensure its safety.”
Mr. Chokshi said that buyers are eager to purchase real estate before June 30 in order to apply for a 25% stamp duty exemption for houses under $1 million.
Realestate.com.au economist Anne Flaherty said that as demand exceeded supply last month, the real estate market continued to perform strongly.
“Although demand may slow in the coming winter, the number of page views per listing increased in May and is now slightly lower than the historical high earlier this year,” Ms. Flahti said.
She said that investor inquiries are increasing, and the interest of first-time home buyers has also risen slightly after a downward trend since January.
“I expect prices to continue to rise in the winter, but with a slight decrease in demand, the removal of market stimulus measures and the increase in long-term fixed-rate mortgage rates, prices may rise at a slower rate,” Ms. Flaherty said.
The fastest selling place
Suburbs, average market days
St Andrews Beach-8
Upper Ferntree Gully – 12
Cold flow – 12
Chelsea Heights – 13
Mount Evelyn – 14
Upway – 14
Baxter – 14