REA’s PropTrack has released its market outlook for November, noting listing volumes increased across the country throughout October while property prices also continued to rise.
PropTrack’s Cameron Kusher said a record number of properties had come to market across the capitals, with new listings hitting a three-year high.
“Potential buyers have finally seen the uplift in new listings that they have been crying-out for…,” Mr Kusher said.
“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.”
While new listings were on the rise, overall volumes remained 19.3 per cent weaker than October 2020.
“Properties are selling quicker than they were a year ago while the amount of stock available for sale has reduced dramatically,” Mr Kusher wrote.
“Prices have increased by more than 20 per cent 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.”
Mr Kusher attributed the uplift in prices to record-low mortgage rates and people dedicating more of their income to housing.
However, he noted the trend of funnelling funds into property could be coming to an end.
“…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,” he predicted.
“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.”
New South Wales
Mr Kusher reported dwelling prices in Sydney had increased 26.6 per cent in the past year, but they were pipped by regional NSW where prices increased 33.5 per cent.
Houses continued to outpace units when it came to price increases.
Meanwhile, in the first 10 months of 2021, preliminary monthly sales volumes indicated there were 43.1 per cent more sales in Sydney than over the same period last year, and 29.8 per cent more sales in regional NSW.
In terms of REA site data, it revealed the number of days NSW properties were for sale on realestate.com.au had reached a historic low of 24 days in Sydney and 31 days in regional NSW.
“Average views per listing in Sydney fell by 2.7 per cent in October as new listing volumes rose, while in regional NSW views per listing hit fresh historic highs,” he said.
In Victoria, lengthy lockdowns did little to dampen the property market, with Melbourne property prices increasing 13.3 per cent over the past year, while regional areas rose 24.4 per cent.
Again, houses outpaced units, particularly in Melbourne where house prices increased at more than double the rates of units, while regional Victoria saw house price growth that was 5 per cent higher than units.
In terms of sales volumes, Melbourne’s was 55.4 per cent higher than the same period last year, while in regional Victoria sales volumes have grown by 38.5 per cent.
REA site data revealed median days on site were at an historic low in Melbourne at just 26 days, and also in regional Victoria at 31 days.
“Despite a surge in new listings, views per listing reached new historic highs in both Melbourne and regional Victoria in October,” Mr Kusher reported.
The price increase trend continued in Queensland where prices in Brisbane have risen 19.1 per cent in the past 12 months compared to a 21.8 in regional Queensland.
House prices in Brisbane 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 sales volumes in Brisbane were 46 per cent higher than they were over the same period last year and in regional Queensland they are 51.6 per cent higher.
In Brisbane, the median number of days on realestate.com.au increased from 35 to 38 days in October while regional Queensland remained unchanged at 53 days.
Both Brisbane and regional Queensland recorded a record number of views per listing in October.
Adelaide property prices have increased 18.3 per cent over the past year, while regional SA has enjoyed price rises of 13.8 per cent.
Most of that growth came from house prices, with unit prices barely increasing.
SA has also enjoyed higher sales volumes so far this year, with volumes increasing 33.8 per cent in Adelaide and 38.1 per cent in regional areas compared to the same time last year.
In terms of the number of days on realestate.com.au, both Adelaide and regional areas hit a historic low in October. In Adelaide the average number of days on site was 25 while in regional areas it was 61.
Views per listing reached a new record high across the state.
The Western Australian market has cooled a little over the past year, but still prices rose 8 per cent in Perth and 9.3 per cent in regional areas.
Interestingly, unit price growth outpaced that of houses in Perth while in regional WA house price growth has slightly outpaced that of units.
House price growth might have slowed, but sales volumes for the year so far are up. In Perth, sales volumes increased 47.5 per cent compared to this time last year, while in regional WA they are 54.6 per cent higher.
Meanwhile, days on site reached a record low of 59 days in Perth during October, and 94 days in regional WA.
The number of views per listing in Perth in October was 11.5 per cent higher than a year earlier, while in regional WA views per listing reached a historic high.
Tasmania continued to enjoy rapid price growth right across the state. Over the past 12 months prices have increased 32.5 per cent in Hobart and 31.7 per cent in regional Tasmania.
Houses have outpaced units across all regions, but still unit prices are up more than 25 per cent.
So far this year, sales volumes are 15.3 per cent higher than last year in Hobart and 20.4 per cent higher in regional Tasmania.
While price increases continue, the number days a Hobart property spends on realestate.com.au increased in October, rising from 19 days in September to 25 days.
Across the rest of Tasmania, properties were on site for a median 38 days – the lowest on record.
Views per listing fell 8.9 per cent for Hobart in October however, but overall have increased by 41.7 per cent year-on-year. In regional Tasmania, views per listing rose by 4.2 per cent last month to be 76.4 per cent higher year-on-year.
Price growth in the Northern Territory has slowed in the past few months, but in Darwin prices have still increased by 37.6 per cent over the past year, while regional areas have risen by 8.3 per cent in the 12 months to October.
Sales volumes are much higher than a year ago with preliminary monthly sales so far this year 56.1 per cent higher than the same period last year in Darwin and 91.3 per cent higher than a year ago in the regions.
The median days on site for properties sold in October was 58 days in Darwin and 110 days in regional NT, down from 63 days and 114 days respectively a year ago.
During October, there was a 1.7 per cent decline in views per listing in Darwin, however, they remained 9.5 per cent higher year-on-year.
In regional NT, views per listing fell by 9.7 per cent over the month, remaining 4.4 per cent higher year-on-year.
Property prices in Canberra are continuing to climb and have increased by 29.6 per cent over the past year, driven by a 36.2 per cent rise in house prices.
Unit prices also increased, rising 14.7 per cent over the year.
So far this year, the number of preliminary monthly sales has increased by 22.1 per cent compared to the same period last year.
The median days on site for properties sold across the territory during October reached a historic low of 21 days, down from 25 days a year ago.
The number of views per listing across the ACT reached a new historic high in October to be 43.3 per cent higher year-on-year.