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Sellers Soon Set to Return to the Market

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  • Post published:April 11, 2021
  • Post category:News

Article originally published on Real Estate AU

THE property market has been on an upward trajectory from the moment a COVID-induced bust failed to materialise mid last year.

While buyers were quick to regain confidence, hitting the market in force — figures released this week by CoreLogic show that borrowing for a residential home reached a record $28.8bn in January, up 34.8 per cent on the decade average — sellers have been slow to jump on the boom bandwagon.

Villa Verona is back on the market after being taken off in 2019.

The result has been a demand-supply imbalance, which is pushing the market into unprecedented territory when it comes to prices.

So much so, that it’s almost impossible to keep up.

Street, suburb and state records continue to be broken by Gold Coast properties, equating to record sales figures being pushed out by estate agencies.

Last week Ray White revealed it sold $1.4bn worth of property across Queensland in the past month, while nationally the figure was $8.74bn, up a staggering 92 per cent year on year.

The figures are mind-blowing, but a change may be on its way.

According to listings website, there are signs that sellers may soon start to return to the market.


2040 The Circle, Sanctuary Cove, was recently listed for $3.25m with Jeanette Schmidt and Leeanne Judd of Amir Prestige. director of economic research Cameron Kusher said COVID had introduced a lot of uncertainty, prompting sellers to sit tight while they waited to see what happened.

However, the group’s Property Seeker report, which surveyed more than 6000 property owners, showed sellers were regaining confidence after watching the coronavirus situation improve and the economy recover.

“I expect supply to increase for the next few months and ramp up quite a bit during spring, assuming we aren’t forced back into lockdowns at some time,” Mr Kusher said.

“We are seeing a significant increase in the volume of sales so far this year compared to recent years and the supply of stock is increasing, albeit the rise in supply remains insufficient relative to demand,” he said.

This six-bedroom Currumbin Valley home has just hit the market through Theo Shaprio and Lucy Cole of Lucy Cole Prestige.

Mr Kusher said as more people purchased homes, there may be a better balance between supply and demand later this year.

Some agencies are already recording rises in stock levels.

Dan White, managing director at Ray White, said listings across the board were up 16 per cent in March compared with the same time last year and 10 per cent up on levels in December.

“Contrary to much market commentary, there is no shortage of new listings,” Mr White said.

“In fact, there is more new stock coming to market now than there has been for many years. “As we look forward to April and May, we see continued strong listings numbers off the back of the numerous market appraisals currently being conducted.”

Market conditions, led by booming house prices and record low interest rates, are the key driver for sellers today, as opposed to a lifestyle change.

Cameron Kusher, director of economic research.

And those who are entering the market are doing so with big expectations of price, according to’s report.

Market research and insights manager Kirstin Hodgson said when the same research was conducted in 2019, vendors were expecting to achieve $650,000 for their home on average.

“In 2020, we saw fewer vendors expecting to sell in the sub-$400,000 range and more expecting to sell in the $1m to $1.5m range, pushing the average to $665,000.”

While a rush of new listings should in theory help to curb large price rises, it is unlikely that the level of supply will surpass or even match the rapacious appetite for property for some time, especially if interest rates remain low and employment opportunities continue to rise.

However, for those sellers holding off listing simply because they think prices will rise further, Gold Coast property stalwart Andrew Bell of Ray White Surfers Paradise has this sobering warning.

“The biggest mistake most sellers make, is to sit on their hands because they’re waiting for the top of the market,” he said..

“The simple fact is no one ever knows when the market is at its true peak until it has passed. By then it’s too late and people end up regretting that they didn’t act sooner.”