You may be wondering how long properties are on the market these days. You open up the real estate app on your phone, scroll through a few listings, and then there it is: the home of your dreams, ‘added 1 hour ago’. So just how long do you typically have to act in this hot market?
Well, let’s just say it definitely helps to have spoken to us about pre-approval if you’re actively house-hunting right now.
That’s because the average number of days properties are listed for sale on realestate.com.au reached record lows in every state in 2022 and 2023.
So, where are we in 2024? We’ve shifted to a more balanced market lately where it’s taking a little longer for a property to sell than last year. Having said that, it remains a tight market and demand is strong.
Burning question: How fast are homes flying off the shelves?
Nationally, properties are lasting an average of 34 days on the market in the past quarter (that’s as of January). But buckle up, because things get speedy across states!
Western Australia and Queensland take the crown for lightning-fast sales, with homes snapped up in just 29 and 33 days on average, respectively. South Australia follows at a steady 45 days.
On the other hand, if you’re house hunting in NSW, VIC, or Tasmania, expect properties to linger a bit longer, averaging around 50-58 days. Finally, the Northern Territory takes the cake for the longest listing times at around 90 days.
Views per listing and property price searches are also up
There has also been surge in overseas property searches in Australia, as reported by PropTrack, highlighting the increase in interest from international property seekers.
There has been a significant uptick in searches from abroad for both buying and renting properties in Australia, with buy searches up by 11.5% and rent searches up by 7.8% in the past three months. This trend is attributed to the return of migration to pre-pandemic levels.
The increase in overseas search interest, particularly from countries like New Zealand and China, suggests a heightened overall engagement with the Australian real estate market, potentially influencing views per listing and indicating a robust demand that could affect property prices.
How does a property market with low days on market impact buyers?
A property market with low days on market (DOM) can be a double-edged sword for buyers, presenting both challenges and opportunities. Here’s a breakdown of the impacts:
Challenges:
- Increased Competition: Low DOM indicates high buyer demand, leading to more competition for properties. Buyers might face multiple offers and have to be prepared to act quickly and decisively.
- Potential Bidding Wars: In a hot market, bidding wars can erupt, pushing sale prices above the asking price. This can make it difficult for buyers, especially those on a tight budget.
- Limited Time for Due Diligence: The fast-paced nature of a low DOM market can put pressure on buyers to rush through the decision-making process. This might limit their ability to thoroughly research the property, get inspections, or secure financing.
- Potentially Overpriced Properties: In a seller’s market with low DOM, sellers might be tempted to list properties at inflated prices, knowing they’ll likely receive multiple offers.
Opportunities:
- Wider Selection of Qualified Buyers: A low DOM market can attract a wider pool of qualified buyers, ensuring a smooth closing process with less risk of the deal falling through. This can benefit sellers who might get a faster sale.
- Potential for Higher Offers: The competitive nature might incentivize buyers to submit their strongest offer upfront, potentially leading to a better buying experience for sellers.
- Faster Market Movement: A low DOM market indicates high turnover, meaning new properties are constantly coming onto the market. This can be beneficial for buyers who might have more options to choose from over a shorter period.
Tips for buying real estate in a hot market
- Stay informed: Keep an eye on market trends and updates from reliable sources.
- Get pre-approval: Speak to a qualified mortgage broker like Soho Home Loans who can expertly assess your financial situation and advise on next steps.
- Work with a realtor: Find a good real estate agent who can guide you through the process, advise on competitive offers, and help you find properties that fit your needs.
- Be prepared to act quickly: If you find the right property, be ready to move fast with a pre-approval and a competitive offer.
More info on days on market
What does days on market indicate?
Days on market (DOM) is a key metric in the Australian real estate market. It signifies the average number of days a property is listed for sale before it finds a buyer. Here’s what DOM can tell us:
- Market Temperature: A low DOM generally indicates a seller’s market with high demand and properties selling quickly. Conversely, a high DOM suggests a buyer’s market where properties linger longer due to lower demand.
- Desirability: A property with a lower DOM might be considered more desirable due to factors like location, price, condition, or curb appeal.
- Pricing Strategy: An overpriced property might see a higher DOM compared to similar listings in the area.
How to see how long a house has been on the market Australia?
Unfortunately, there’s no single source that universally displays DOM for all properties in Australia. Here are some methods to find this information:
- Listing Details: Most real estate listing websites (like realestate.com.au or Domain) won’t explicitly show DOM. However, you might be able to gauge it indirectly by looking at the “listed” date or comparing it with similar properties that have recently sold.
- Contact the Agent: The real estate agent representing the property will have the most accurate DOM information. Reach out to them directly for details.
- Sold Property Listings: Some websites might show DOM for recently sold properties in your area. This can give you a general idea of how long similar properties are taking to sell.
What does it mean if a house is on the market for a long time?
A long DOM in Australia can have several interpretations:
- Overpriced: The property might be priced above market value, deterring potential buyers.
- Location/Condition Issues: The location or condition of the property might be less desirable compared to similar listings.
- Seasonal Fluctuations: The housing market can be seasonal. Properties might take longer to sell during specific times of the year.
Is Australia at risk for a housing market crash?
This is a complex question with no definitive answer. While there have been concerns about a potential housing market correction, Australia’s economic situation and government policies might help mitigate significant risks. Here are some factors to consider:
- Interest Rate Increases: Rising interest rates could make mortgages more expensive, potentially impacting buyer affordability and demand.
- Supply and Demand: A significant imbalance between housing supply and demand can lead to price fluctuations.
- Government Policies: Government regulations and interventions can influence the housing market.
It’s important to stay informed about market trends and consult with a financial advisor before making any real estate decisions.
