Victorian homes are flying off the market faster than ever before as a “fear of missing out” drives buyers to act fast and broaden their budgets.
The typical property sold after just 28 days on market last month, a record low, according to a new report from realestate.com.au.
Houses in St Andrews Beach were selling the fastest in the state, taking a median of just eight days. The same property type was being snapped up within less than a fortnight in outer suburbs of The Patch, Upper Ferntree Gully and Coldstream, according to separate realestate.com.au May data.
Nationally, days on market hit a historic low of 32, compared to May last year when homes were left to linger on market for a median 62 days following the onset of the pandemic.
This month’s REA Insights Housing Market Indicators Report also reveals more Aussies are looking for properties over $1m thanks to record-low interest rates and “high household savings”.
Ray White Cheltenham director Kevin Chokshi said Melbourne’s lockdowns last year combined with the latest snap lockdown had instilled buyers with a “sense of urgency”.
“The ongoing uncertainty creates a little bit of fear, but it’s also creating a fear of missing out,” Mr Chokshi said.
“The buyers that are looking aren’t fresh either, they have been looking and missing out for months and lockdown has amped it right up.”
He said the demand had cut sales campaigns short, with eager buyers picking up a three-bedroom unit at 6/129 Park Road, Cheltenham, ahead of its scheduled auction.
“Prior to the lockdown the interest we were getting was in the listed range from $790,000 to $850,000, and then subsequently someone’s come in to buy it for $1m,” Mr Chokshi added.
“People have realised the alternative is to wait until more stock comes on the market and prices might go up even more, or they can review their budget and their strategy to secure it.”
Mr Chokshi said there was an additional rush for buyers to purchase property before June 30 in order to claim the 25 per cent stamp duty cut for homes under $1m.
Realestate.com.au economist Anne Flaherty said the property market continued to show strength with demand outpacing supply last month.
“While demand may moderate over the coming winter months, views per listing increased in May and is now just shy of its historic high earlier this year,” Ms Flaherty said.
She said investor inquiry was increasing and interest from first-home buyers had also risen slightly after trending downwards since January.
“I expect prices will continue to rise over winter, however, with slightly reduced demand, stimulus removed from the market, and rises in longer-term fixed rate mortgage rates, prices are likely to rise at a slower pace,” Ms Flaherty said.
WHERE HOMES ARE SELLING FASTEST
Suburb, Median days on market
St Andrews Beach – 8
The Patch – 11
Upper Ferntree Gully – 12
Coldstream – 12
Chelsea Heights – 13
Avonsleigh – 13
Mount Evelyn – 14
Croydon South – 14
Upwey – 14
Baxter – 14