Eight signs Australia’s property market is booming

By Angus Raine, Executive Chairman Raine & Horne
NOVEMBER 9, 2021

Forget statistics, graphs, long-winded data and so-called expert commentary. These anecdotal signals from working in the property market for over three decades tell me that the housing market is booming.

1. Everyone you know has an opinion on the local property market

Forget COVID-19, politics or religion, house prices and the crazy demand for snapping up a home has become the top conversation topic amongst friends and family. It’s a bit like who will win the Melbourne Cup – everyone has a theory and an opinion. Everyone seems to know someone who has just bought or sold or are in the midst of competing with many others to buy.

2. Almost everybody seems to be building/developing property

From your local butcher, taxi driver to friends, almost everyone is in the throes of building or developing a property. It seems to be everyone is trying to capitalise on a booming market. No wonder it’s a property boom right now!

3. Your local agent’s buyer waiting lists are huge

Prospective buyers waiting in the wing for a home to come up for sale in your dream suburb are at capacity. When you ask to be included you can’t help but cringe at hearing how many people like yourself are also on that list. So much so, you start to realise you may have to broaden your search horizons to other areas within its radius to snap up a property.

4. Homes for sale don’t stay that way for long

When homes are under offer before their weekend home open, or after the first opening, that is always a tell-tale sign of a booming market as it shows multiple would-be buyers were waiting to swoop.

5. Demolitions seem to be occurring everywhere you look

Another way to know the market is hot? Check for the amount of homes being bowled over. A sure sign the housing market is booming is the amount of people choosing to buy a perfectly fine home and knock it over to make way for their dream abode. It is not just houses people are after, it's land value for building a home just as they want it.

6. Tradies are in short supply

You know a property boom is occurring when tradies are booked solid, or don’t even bother to return your calls. With houses being sold and bought like no tomorrow that always equals renovations. Tradies from cabinet makers, electricians, plasterers to landscapers are in high demand right now. Some have closed their books for the year, while others will conduct an initial lookover of a job, followed up by a quote weeks later with work starting anywhere from a month after that.

7. Property is always in the headlines

Turn on the evening news, or open the daily paper and you can be sure to find a property headline or two. Property is a hot topic and almost everyday there is a new headline about prices rising, houses selling at record speed or home loan rates being at record low levels.

8. Agents can’t keep pace with rising values

With so many people selling and buying, real estate agents are struggling to keep pace with skyrocketing values, which are growing at their fastest rate in 30 years. It’s little wonder then that even their best appraisals are falling short as the market continues to roll on and fully committed buyers are often paying more to beat the competition to quality, well-located properties. It’s not underquoting, it’s simply operating in a market no one has seen since Bob Hawke called The Lodge home.

Finally, I always know the market is booming when friends call for property advice, but their question is so open ended like, “Where are the hot spots in NSW!”