As the holiday season approaches, Raine & Horne predicts the Australian property market will defy the traditional Yuletide slowdown, with open for inspection numbers expected to continue to surge well into the festive period.
In October, research conducted by Raine & Horne revealed a notable 25% surge in groups attending open for inspections (OFIs).
Angus Raine, Executive Chairman Raine & Horne, said, “This unexpected and robust trend suggests a potential extension of the spring property market, possibly lasting until Saturday, 23 December, just two days before Christmas.”
Adding fuel to this late-year enthusiasm for bricks and mortar is Australia's surging annual net migration, which likely reached 470,000 people for 2022/23[i]. This population influx is driven by the return of international students and working holidaymakers, has added extra demand for Australian real estate.
Mr Raine acknowledges the usual festive season real estate trends but notes, "It's been an exceptional year for property with double digit growth in many markets – and I don’t believe that buyers will be distracted by the holidays.
“Traditionally, as the first weeks of December approach, the property market experiences a slowdown, with fewer open for inspections, postponed listings, and a decline in home sales until the New Year.
“Even in the face of a succession of interest rate hikes, enthusiastic investors and homebuyers have remarkably sustained their activity in the market and this resilience and persistence is likely to extend the traditional spring market right up to Christmas.”
As the market becomes increasingly competitive as the festive season approaches, many property hunters are grappling with a sense of FOMO, or fear of missing out.
“'Fear of missing out will fuel robust activity in many city and regional markets up to the last Saturday before Christmas,' Mr Raine remarked.
"One of the hurdles for buyers is the scarcity of property listings, which will add to more December real estate FOMO than normal as many Australians rush to finalise their real estate plans before the new year.
"Despite more buyers attending open homes, our research reveals that appraisals across Australia only saw a modest month-on-month increase of 3.4% in October, which will mean fewer properties available to meet buyer demand,” Mr Raine said.