Why Are New Home Listings Selling So Quickly?
BY PROPCREW | JUNE 6, 2024
New home listings are flying off the market faster than ever, especially in big cities. This rush is driven by high buyer confidence and a shortage of new listings, making properties sell quicker.
In the past, homes would stay listed for over 60 days. But when the pandemic hit, things changed. By the end of 2020, the demand for homes skyrocketed, and more listings were sold within 60 days than those taking longer.
In 2022, interest rate hikes slowed down buyer demand, and homes started staying on the market for over 60 days again. Now, with stronger buyer sentiment and fewer new listings, properties are being snapped up quickly once more.
Metro vs. Regional Markets
New listings in metro areas are selling the fastest. In 2023, about 58% of metro listings were sold within 60 days, compared to just 38% in regional areas. The demand in metro markets is high, with all cities except Canberra and Hobart seeing more listings selling in 60 days or less year-on-year.
Adelaide is the hottest market right now, with 66% of new listings sold within 60 days as of December 2023. That's a 37% increase from December 2022. Perth and Brisbane also saw significant increases, with both cities growing by 37% over the same period.
The Reality of Total Listings
Even though new listings are selling fast, over 60% of all listings each month have been on the market for 90 days or more. This includes properties that might have sold and been removed from listings.
Comparing preliminary sales data, it's clear that if a property doesn't sell within 60 days, the chances of selling after that drop significantly. This highlights the importance of pricing and marketing a property correctly to ensure a quick sale.
Key Takeaways
- High Buyer Confidence: Strong buyer sentiment is driving quicker sales.
- Metro Markets Lead: Metro areas like Adelaide, Perth, and Brisbane are seeing the fastest sales.
- Shortage of Listings: A lack of new listings contributes to quicker sales.
- Importance of 60 Days: Selling within 60 days is crucial; otherwise, the chances of a sale decrease.
For anyone looking to invest in real estate, whether it's an investment property to buy or engaging a buyers agent in Melbourne or buyers agency Perth, understanding these trends can help make informed decisions. The same applies if you're a first-time homebuyer in Victoria or Tasmania.
The property market is dynamic, and staying informed can make a big difference in your investment journey. If you're looking to buy, now might be a great time, especially with properties selling faster than ever.