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The December slowdown is expected to be deferred this year, with high listings and opens predicted to persist until 23 December.
Research conducted by Raine & Horne has revealed that open for inspection (OFI) numbers will most likely remain high until well into the Christmas period, with the findings exposing a 25 per cent surge in groups attending OFIs.
Executive chairman Angus Raine stated: “This unexpected and robust trend suggests a potential extension of the spring property market, possible lasting until Saturday, 23 December, just two days before Christmas.”
One significant factor fuelling this unprecedented end-of-year energy is Australia’s soaring annual net migration. With international students and working holiday-makers returning to the country, some sources estimate Australia’s total overseas immigration for 2022–23 to be in the region of 470,000 newcomers.
Fear of missing out is another factor that Mr Raine believes will contribute to this extended buying enthusiasm.
“One of the hurdles for buyers is the scarcity of property listings, which will add to more December real estate FOMO than normal as many Australians rush to finalise their real estate plans before the new year,” he noted.
Meanwhile, supply remains low, with Mr Raine noting that “despite more buyers attending open homes, our research reveals that appraisals across Australia only saw a modest month-on-month increase of 3.4 per cent in October, which will mean fewer properties available to meet buyer demand”.
As a result of this combination of low supply and time pressure, Mr Raine concluded that “fear of missing out will fuel robust activity in many city and regional markets up top the last Saturday before the holidays”.
The Raine & Horne executive chairman acknowledged that festive celebrations often cause property inspections and listings to slow down in early December, with many preferring to wait until the new year to sell.
This year, however, he observed that “even in the face of a succession of interest rate hikes, enthusiastic investors and home buyers have remarkably sustained their activity in the market”.
“It’s been an exceptional year for property with double digit growth in many markets – and I don’t believe that buyers will be distracted by the holidays,” predicted Mr Raine.
“This resilience and persistence is likely to extend the traditional spring market right up to Christmas,” he prophesied.
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