Buyer demand for property at an all-time high: REA

author-avatar By on September 09, 2021
Buyer demand for property at an all-time high: REA

The REA Insights Housing Markets Indicators Report shows that property seekers remain undeterred by lockdowns, as buyer demand reached an all-time high.

The report found that in August 2021, email enquiry to real estate agents on realestate.com.au rose by 12.2% to reach an historic high.

Demand base on views per listing also reached a new record to be 46.7% higher year-on-year.

The report analyses search activity, email enquiries, views per listing, weekly sales and other key metrics. 

REA Group Director Economic Research, Cameron Kusher, said that the report comes ahead of what is expected to be a delayed spring selling season. 

"Limited housing stock available for sale combined with prolonged lockdowns in a number of states and territories has created difficult conditions for buyers," he said. 

"With lockdowns expected to continue in ACT, NSW and Victoria, we may not see this demand pressure alleviated until seller confidence returns and the volume of new supply increases once lockdowns end. 

"This disconnect between the supply of stock for sale and buyer demand is likely to create upwards price pressures."

Key findings from the report:

  • The volume of email enquiries to real estate agents on realestate.com.au reached an historic high in August, rising 12.2% over the month. 
  • National search activity on realestate.com.au for properties for sale increased last week to be 17.6% higher year-on-year.
  • Demand based on views per listing for properties for sale reach an historic high in August to be 46.7% higher year-on-year.
  • Weekly sales results to-date are 50.7% higher compared to the same time period last year.
  • Of the properties sold in August, the median days on site rose to 41 days, marking the longest time on site since February 2021. 

Spring buying season going digital

New data from the Commonwealth Bank reveals more customers are engaging with digital tools for home loan information. 

CBA predicted the upcoming spring buying season will not only see the return of the investor, but will be the most digitised on record.

Approximately 90% of CommBank's property transactions are now settled online, and the usage of 'DigiDocs' – a new process that replaces paper contracts – has increased 2,000% since July 2020.

Approximately 370,000 CBA customers checked their home loan balance or interacted with the home loan tools online, for an average of 26 times a month, which is an increase of 13% year on year.

The bank has also seen approximately 5,000 customers use its digital loan tool to split, switch or fix their home loan since the tool launched in April 2021.

"Restrictions around movement and face-to-face meetings as well as COVID-19 induced policy changes around government processes has meant the home buying process has become increasingly digital,” said Dr Michael Baumann, CBA's executive general manager of home buying.


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Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered which includes retail products from at least the big four banks, the top 10 customer-owned institutions and Australia’s larger non-banks:

  • The big four banks are: ANZ, CBA, NAB and Westpac
  • The top 10 customer-owned Institutions are the ten largest mutual banks, credit unions and building societies in Australia, ranked by assets under management in November 2020. They are (in descending order): Great Southern Bank, Newcastle Permanent, Heritage Bank, Peoples’ Choice Credit Union, Teachers Mutual Bank, Greater Bank, IMB Bank, Beyond Bank, Bank Australia and P&N Bank.
  • The larger non-bank lenders are those who (in 2020) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.
  • If you click on a product link and you are referred to a Product or Service Provider’s web page, it is highly likely that a commercial relationship exists between that Product or Service Provider and Savings.com.au

Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site.

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*Comparison rate is based on a loan of $150,000 over a term of 25 years. Please note the comparison rate only applies to the examples given. Different loan amounts and terms will result in different comparison rates. Costs such as redraw fees and costs savings, such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

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Aaron joined Savings.com.au in 2021. He is a finance journalist with a keen interest in property, the share market, and improving financial literacy in young Australians.

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