While you were kicking your feet up over the festive season, did you flick open your phone and scroll through real estate listings in your dream location? If so, you might’ve noticed there were fewer properties listed for sale than usual. Here’s why.
If you couldn’t find exactly what you were looking for, don’t stress - it’s actually much harder to find ‘the one’ at this time of year.
That’s because property listings traditionally drop in December, with 2020 no exception.
In fact, according to SQM Research, national residential property listings decreased by 7.9% in December 2020, falling from 296,267 in November 2020 to 272,999.
If you compare that figure to 12 months prior, it was a 5.8% drop (that’s 2020 for you!).
What was really interesting, however, was that new listings (those less than 30 days old) dropped a whopping 17.0% in December, with 13,680 fewer new properties listed for sale than in November.
So why did the overall number of listings drop?
Well for starters, you can’t blame people for not wanting to spend their summer holidays selling their property, particularly after enduring the 2020 COVID-19 lockdown/s.
"The month of December traditionally records falls in properties listed for sale as it is the start of the festive and summer holiday period,” explains Louis Christopher, Managing Director of SQM Research.
Another factor at play could also be that two-thirds of Australians believe it’s a good time to buy property, and thus, demand is outstripping supply.
Indeed, you may have even caught one or two news reports of regional and coastal house prices soaring as city slickers decide to finally make their big escape.
This home buyer activity has been further aided by a number of federal and state government initiatives, including the First Home Loan Deposit Scheme, HomeBuilder and stamp duty exemptions/concessions.
So when can I hope to find ‘the one’?
The good news is that listings are expected to increase again shortly, according to SQM Research.
"Going forward I believe listings activity is going to remain strong in early 2021,” Mr Christopher says.
Furthermore, recent NHFIC research indicates new residential construction supply is expected to exceed demand by 127,000 dwellings in 2021 across Australia, and 68,000 dwellings in 2022 (this is due to the dramatic impact of COVID-19 on net overseas migration).
Got your eye on something?
So, how’d you go with your most recent property search? Anything catch your eye?
If so, don’t let it be “the one that got away”.
Get in touch with us today and we’d be happy to go through your financing options with you.
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