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.


Advertisement

Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Lender

Variable
More details
UNLIMITED REDRAWSSPECIAL OFFER
  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
UNLIMITED REDRAWSSPECIAL OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
Variable
More details
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES
  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
Variable
More details
NSW/VIC/SA METRO & INNER REGIONAL AREAS
NSW/VIC/SA METRO & INNER REGIONAL AREAS

Variable Home Loan (Principal and Interest)

  • $5000 Cashback. T&Cs Apply.
Variable
More details
REFINANCE ONLY
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
REFINANCE ONLY

Variable Rate Home Loan – Refinance Only

  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
Variable
More details
NO ONGOING FEESFREE REDRAW FACILITY
  • Rate Match Guarantee. Tic:Toc will match the rate on identical variable P&I home loans. T&C's Apply.
NO ONGOING FEESFREE REDRAW FACILITY

Live-in Variable Loan (Principal and Interest) (LVR < 90%)

  • Rate Match Guarantee. Tic:Toc will match the rate on identical variable P&I home loans. T&C's Apply.

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of June 25, 2022. View disclaimer.



Image by Romain Terpreau via Unsplash

Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. 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. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please visit the web site links at the bottom of this page.

Latest Articles

author-avatar
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.

Collections:

Be Savings smart.
Subscribe for free money newsletters.

By subscribing you agree
to the Savings Privacy Policy