Spring is tipped to be one of the biggest months in residential sales in Brisbane’s industry. This should come as no surprise, as the Brisbane Property Market has gone from strength to strength in 2021. Key barometers such as levels of buyer enquiry and the number of registered bidders per Auction, all indicate that this momentum will continue, and more, in Spring.
In residential real estate, Spring is traditionally the busiest time of the year. In the years gone by, there has been a consistent pattern for these warmer months, with an increase in the number of homes for sale nationwide. This is largely due to timing; it allows people to purchase and/or sell their home and settle in by Christmas. In 2021, many signs point to this being a standout period, but not just because of this.
According to CoreLogic data, on a historical 10-year average basis, about 42,100 properties come to market per month across Australia. This jumps to 48,700 per month during Spring. Though we can expect to see an increase in Brisbane, the dwellings sales to new listings ratio in 2021 is currently sitting at an all-time high.
The sales to new listings ratio is calculated by dividing the number of sales that have taken place over a given period by the number of new listings added to the market over the same time. For the past decade, the national ratio has averaged 0.9, suggesting for each listing added to market, there was just under one transaction that took place. When the ratio is 1, it implies buyer demand and advertised supply is balanced.
At present, the sales to new listing ration in Brisbane is 1.3, which suggests that there is more than one transaction taking place for every new unit of supply in the same period. The sales to new listings ratio in Brisbane has averaged above 1 since August 2020, indicating the beginning of the current ‘boom’ Brisbane’s property market is experiencing.
Though there are fewer homes on the market, that doesn’t mean that there is less demand. In fact, demand is higher than ever. This isn’t just hear say either: realestate.com.au have reported a historic high for search volume on Queensland properties. They are forecasting that while lockdown remains in key states, heightened search volumes should continue. As a direct result, email enquiry to agents has also increased significantly. If you’ve been to an Auction recently, you would have seen the demand first-hand. In August of 2021, Place had a 95% clearance rate across 106 Auctions, with an average of 8 registered bidders per auction.
With high demand and low stock at play, conditions for sellers have never been more favourable. On the other hand, buyers may be facing challenges securing a home in this market. Despite the number of new listings remaining low, it can be expected that spring could see this increase and provide buyers with more choice.
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Article by Daisy Hicks