No matter where you look, the data shows that we are in the middle of the best property market in 20 years, making now the perfect time to list a property for sale. Indeed, in the more than three decades I have worked in the industry, I have never seen a market like this, with the entire country experiencing this property surge simultaneously.
Overall, Australian home values surged 2.1% higher in February, the most significant month-on-month change in CoreLogic's national home value index since August 2003.
The Sydney and Melbourne markets were among the strongest performing markets, recording a 2.5% and 2.1% monthly lift in home values, respectively. The quarterly trend still favours the smaller cities, with Darwin housing values up 5.5% over the past three months, while Hobart values rose 4.8% and Perth was up 4.2%.
Factors driving values higher
Urged on by mortgage rates as low as 1.79%, improving economic conditions, government incentives for first home buyers and advertised listing levels that are a massive 38% lower than the start of the year, according to statistics from Raine & Horne, and it's little wonder Australia's housing market is charging on all cylinders.
Moreover, around 400,000 Australian ex-pats have returned home since the start of COVID, and these people need somewhere to live. While this extra demand is also fuelling property price hikes, our data indicates attendance at open homes is up by more than 32% since the end of 2020.
Also demonstrating the turbocharged demand for Australia's favourite asset class, auction clearance rates in our major capital cities average a record 80% against a long-term average closer to 60%. Better still, time on market for a property sale is measured sometimes in hours, let alone days or weeks. That said, when it comes to the most suitable method of sale, it's horses for courses.
In Darwin, for example, traditional private treaty sales campaigns, are achieving the best results for vendors. In the northern capital, properties selling for $50,000- $60,000 above expectations are commonplace, according to the Raine & Horne team in Darwin.
Empty nester must act on once in a generation market
The bottom line is that whether you own a property in a capital city or a major regional growth hub, Australia is in a once in a generation property market. That said, while I don't have a crystal ball, what I do know about the nature of investment markets such as real estate is that the boom conditions have a time limit.
Therefore, if you're considering a property sale to take advantage of the growth conditions, now is the time to move before the markets' trajectory changes. This advice is critical for the retirement plans of empty nesters sitting on large sprawling family homes in our major capital cities.
The current market conditions won't last forever, so be sure to contact your local Raine & Horne agent for an obligation-free appraisal of the value of your property.