Australian Property Market Sees High Re-listing Rates and Rising House Prices Amid Shortage of New Homes

Australian homeowners are re-listing their properties at high rates within just two years of purchase, according to a recent analysis conducted by Suburbtrends, a leading Australian real estate analytics firm. The study highlights regional variations, with Queensland leading at 9% and the Australian Capital Territory at a low of 3% (Tasmanian Times). At the same time, national home values increased by 0.6%, marking the first positive result after a 10-month downward trend, according to CoreLogic data (Australian Associated Press).

Kent Lardner, founder of Suburbtrends, explains that the top 10 reasons for re-listing properties include job relocation, financial stress, lifestyle changes, real estate investment, market appreciation, neighbourhood dissatisfaction, property defects, changes in interest rates, inheritance, and overestimation of affordability. “These factors are not unique to any one state, but their impact may vary across regions,” Lardner notes (Tasmanian Times).

Queensland’s high rate of re-listing is likely attributed to its dynamic job market and attractive real estate investment opportunities. Lardner says, “Queensland’s rapid development and economic growth have created a climate where job relocation and investment in real estate are more prevalent” (Tasmanian Times).

Meanwhile, CoreLogic’s research director, Tim Lawless, attributes the first monthly improvement in national home prices to factors such as the tight rental market, the return of overseas migrants, and a shortage of new homes listed on the market. “With rental markets this tight, it’s likely we are seeing some spillover from renting into purchasing, although, with mortgage rates so high, not everyone who wants to buy will be able to qualify for a loan,” Lawless explains (Australian Associated Press).

Lardner suggests that real estate agents should leverage these property market trends and maintain strong relationships with recent clients, particularly those who have re-listed their properties within two years. He advises, “Given that 3% to 9% of homeowners resell within two years depending on the state, agents can capitalise on this opportunity by staying in touch with their past clients” (Tasmanian Times).

Moreover, Lardner highlights the importance of utilising recent sales data and direct mail to engage potential clients. “Homeowners considering selling their properties pay close attention to recent sales, particularly those involving houses similar to their own. Agents should capitalise on this by using direct mail to share information on recently sold properties with targeted homeowners” (Tasmanian Times).

References:

Tasmanian Times, “New Study on High Rates of Property Re-listing in Australia,” https://tasmaniantimes.com/2023/04/new-study-on-high-rates-of-property-re-listing-in-australia/

Australian Associated Press, “Australian house prices rise again amid shortage of new homes and tight rental market,” https://www.theguardian.com/australia-news/2023/apr/03/australian-house-prices-rise-again-amid-shortage-of-new-homes-and-tight-rental-market