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The dire shortage of property listings is forcing “nervous Aussies” to make more risky property purchases, according to a sales director.
It’s being fuelled by a significant surge in demand from those who sat on their hands last year and are now eager to make up for lost time, according to Upside Realty director of sales James Kirkland.
Traditionally, home owners would “play it safe”, selling their home before purchasing a new one.
But now, Mr Kirkland said real estate agents are reporting buyers in some instances rushing in to make a purchase before they’ve sold their principal residence.
“We usually see natural movement in the market, but this hasn’t occurred in the last 12 months due to so much uncertainty and people holding off selling,” the director explained.
In January 2021 alone, Mr Kirkland and the Upside Realty team saw an 86 per cent increase in the average number of groups attending their open homes when compared to January 2020.
Despite the buyer demand, listings across capital cities are down by 19.4 per cent compared to the same period last year. When compared to 2019, live listings were down almost 40 per cent, which equates to 40,000 properties that did not go to the market.
“While many are desperate to buy, there’s still so many sellers choosing to wait it out and not put their home on the market. Because of this, we are seeing so many Australians stuck in houses that are too big — or too small — for their needs,” he commented.
With so many people putting off a move, the market is now experiencing a “compounding effect”.
It’s leading to a big shortage of properties, which, in turn, has driven up prices.
The phenomenon has led the sales director to predict a “tsunami of listings” to hit the market soon.
Investors are now urged to go against the tide and sell their properties to take advantage of the current market conditions.
“With JobKeeper about to be phased out and banks calling in their loans, people are desperate to secure a property. So, if you’re thinking of selling, now is a good time to do it,” Mr Kirkland concluded.
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