Selling surge: Record-breaking rush to cash in on home price boom

The property market has been hit by a huge wave of homes listed for sale as sellers look to take advantage of rising prices and surging demand.

The number of homes listed for sale last month hit a decade high in Australia’s biggest property market, driven by a major shift in buyer and seller sentiment.

New listings across Australia rose by almost 22% last month compared to September, with a bigger increase in the capitals (24%) than the regions (17.5%), according to the latest REA Group Listings Report.

The number of homes that hit the market in Sydney in October reached levels not seen in a decade, with new listing volumes surging by 20% compared to the previous month.

Sydney’s bumper result was 6% higher than October last year, indicating more sellers are opting to take advantage of buoyant market conditions this spring.

Melbourne recorded an even bigger monthly increase, with listings jumping by almost 30% compared to the previous month.

It was the most new listings to hit the Melbourne market in one month since November 2021, during the height of the city’s last property boom, and the highest October result ever recorded.

REA Group executive manager of economics Angus Moore said strong property market conditions and improving sentiment were behind the lift in new listings.

“We’ve seen some rate cuts, buyer confidence is relatively good, and expectations for home prices are very positive,” he said.

“That’s leading vendors to be a bit more confident in listing.”

The surge in homes for sale brings much-needed choice for buyers in Australia’s two largest cities, given the total number of homes for sale has decreased compared to a year ago as eager buyers snap up properties.

Home buyers have been out in force after three interest rate cuts boosted buying power and the expanded First Home Guarantee scheme unlocked higher-priced properties for first-home buyers.

Real estate agent and Ray White United Group director Peter Diamantidis said the scheme’s higher price caps had triggered an increase in first-home buyers, while the lower interest rate environment allowed more homeowners to upgrade.

“With rates coming down, what we find is there is more stock because people who were handcuffed because of serviceability and couldn’t upsize now can,” he said.

The rush of homeowners listing properties for sale comes amid an acceleration of price growth, with Australia’s median home value sitting 7.5% higher than a year ago.

Prices are now at record highs in most parts of the country after home values in Melbourne recently surpassed the previous high of early 2022.

Sydney’s median home price is 6.4% higher than a year ago, while prices in Melbourne are up 4.2%.

Mr Moore said the rise in home values and higher auction clearance rates compared to last year had contributed to more homes being listed for sale.

“We’re seeing consistent price growth, and that’s probably given vendors some confidence too,” he said.

Melbourne real estate agent and Barry Plant Point Cook partner Ray Harb said there had been a surge in activity in spring as price growth picked up and vendor confidence improved.

“September and October were the busiest months I’ve had in 20 years,” he said

“There’s been a lot more activity with first-home buyers, more people upgrading and more confidence in the market,” he said.

While new listings levels are breaking records in Australia’s two largest cities, even bigger monthly increases were recorded in Canberra (up 42.4%) and Adelaide (up 36.6%).

Despite the jump in listings last month, the total number of homes for sale across Australia is 9.5% lower than a year ago .

The total number of properties on the market was down almost 15% in Perth, almost 17% in Brisbane and more than 38% in Darwin compared to this time last year.

Mr Moore said the big decline in homes for sale in Darwin was a result of fewer homes coming to the market and properties selling quicker amid a huge surge in investor interest.

“We’ve seen a lot of investor activity in the NT,” he said. “Investors as a share of lending are at record highs by a reasonable margin.”

With the property market set for further price growth amid rising demand, dynamics now appear tilted in sellers’ favour.

“Conditions generally are fairly good,” Mr Moore said. “It’s a fairly healthy environment.”

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