The property market could be showing signs of cooling down with stricter serviceability requirements, RBA announcements, end of lockdowns, and lenders pushing mortgage rates higher.

This comes despite Domain Property Report highlighting volumes of new listings remain strong across capital cities in the first week of November.

Key data insights provided by Property Exchange Australia (PEXA) for the month of October, signal downward trends may continue for the rest of 2021, highlighting:

  • VIC & NSW recorded sale settlement drops of 4.3% and 3.1%, respectively, due to the lingering effects of lockdowns throughout October.

  • QLD and WA also recorded sale settlement drops in October, down 5.3% and 5.5% respectively, although they remained above levels recorded in October 2020.

  • All states saw sharp drops in refinances throughout October, however this drop was from very high levels recorded throughout the prior month.

Victoria

Throughout the month of October, sale settlements were down 4.3% month-on-month to September and up 21.4% on the same month last year.

Refinancing was down 11.8% in October from September with 11,115 Victorians refinancing compared to 12,643 in September.

Victoria also saw sale settlement aggregate value drop 11.4% month-on-month from September to $14.3 billion throughout October.

Major banks showed an increase in their position for new loans throughout the month of October.

New South Wales

New South Wales recorded a decline of sale settlements, down 3.1% month-on-month in October from September and an increase 1.6% on the same month last year.

Refinancing in New South Wales was down 13.6% in October from September, with 10,415 residents refinancing compared to 12,061 in September.

In light of this, non-major banks demonstrated strong growth in refinancing position at the expense of major banks.

Sale settlement aggregate value dipped 8.2% month-on-month from September to $20.5 billion throughout October.

Queensland

Sale settlements were down 5.3% month-on-month in October from September in Queensland, yet remained up 18% on the same month last year.

Refinancing in Queensland declined 9.4% in October from September, with 5,704 residents refinancing compared to 6,293 in September.

Sale settlement aggregate value fell 19.% month-on-month from September to $14.6 billion throughout October.

Major banks showed a decline in October with new loans against September while also continuing to decline in refinances.

Western Australia

Throughout October, Western Australia recorded a 5.5% decline in sale settlements from September, yet remained up 0.9% on the same month last year.

Refinancing in Western Australia declined 11% in October from September, with 2,739 refinancing compared to 3,079 in September.

Sale settlement aggregate value fell 1.9% month-on-month from September to $4.1 billion throughout October.

Both major and non-major banks declined in new new loans throughout October.

REA says housing market is hitting 'record speeds'

Despite PEXA detailing a decrease in settlements, an increase in the volume of properties up for sale across the country is driving increased views, search volumes and enquiries.

Launching the PropTrack Housing Market Indicators Report, REA notes properties are selling a week faster in October compared to the month prior. 

PropTrack Economist and report author, Angus Moore, said the amount of time a property is listed on realestate.com.au before selling has reached its fastest level in five years.

"High demand, combined with a lack of stock available for sale due to the impact of extended lockdowns, has created strong competition," Mr Moore said.

"Indicators of buyer demand show property seekers are extremely motivated, with search volumes reaching record-highs in mid-October."


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