REA's PropTrack Property Market Outlook: November 2021
he housing market has been given a much-needed listings boost in October as lockdowns ended.
Potential buyers have finally seen the uplift in new listings that they have been crying-out for after a record number of properties came onto the market across Australia’s capital cities in October, and hit a three-year high nationally.
Nonetheless, buyers will continue to face tough competition with demand for properties based on the number of views per listing on realestate.com.au reaching historic highs in October 2021.
Properties are selling quicker that they were a year ago while the amount of stock available for sale has reduced dramatically. Nationally, the number of total listings remains 19.3% weaker than October 2020.
Prices have increased by more than 20% over the past 12 months, while sales volumes and the number of views per listings are also significantly higher.
While prices have continued to rise, the rate of growth has slowed from its peak earlier this year, a trend expected to continue.
The strong uplift in prices has been driven by record-low mortgage rates and people dedicating more of their income to housing, however, we believe is coming to the end of running its course.
The next few months will be interesting to watch. Assuming we continue to see high levels of new stock coming to the market there should be a better balance between demand and supply.
Furthermore, with lockdowns ending and social amenities reopening, along with domestic and international travel, we are likely to see people spending more of their income on these types of pursuits which may lead to less being spent on residential housing and further slowing of price growth.
How property is fairing in Queensland
Over the 12 months to October, prices in Brisbane have risen by 19.1% compared to a 21.8% rise in regional Queensland. House prices in Brisbane have increased at three times the annual rate of units, while in regional Queensland house prices have risen only slightly faster than units.
Over the first 10 months of this year, preliminary monthly sales volumes in Brisbane are 46% higher than they were over the same period last year and in regional Queensland they are 51.6% higher. Ipswich and the inner city have recorded the largest increases in cumulative annual sales in Brisbane while Queensland’s Darling Downs and Maranoa region and Cairns recorded the largest sales uplift in regional areas.
Days on site
The median days on site in Brisbane increased from 35 to 38 days in October while regional Queensland remained unchanged at 53 days. In Brisbane, northern (30 days) and southern (31 days) suburbs had the shortest median days on site while in regional Queensland, the Gold Coast and Sunshine Coast had the shortest days on site, at 37 days.
Views per listing
Both Brisbane and regional Queensland recorded a record number of views per listing in October. In Brisbane, the largest year-on-year increases in views per listing were achieved in Ipswich, Logan and Beaudesert while in regional Queensland, the Darling Downs and Maranoa region and Wide Bay recorded the largest increases.
View the full report here.