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A flood of 300,000 active homebuyers could be about to swamp the property market

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New consumer research indicates a flood of 300,000 active homebuyers could be about to swamp the housing market.

Research conducted by realestate.com.au earlier this year showed 1.6 million Australians are considering selling a property, and the latest Seller Sentiment Survey found 28% of them want to list within the next six months.

That equates to 608,000 possible vendors, but the most interesting finding from the latest research is that half of that pool of potential sellers want to buy their next home first.

If that eventuates, housing markets around Australia could be imminently inundated by some 300,000 active and motivated homebuyers, the research indicates.

PropTrack economist Angus Moore said it had been a busy year already for property markets, including during the traditionally quiet winter period.

“Across the first half of the year we saw more new vendors in capital cities come to market and list on realestate.com.au than any year since 2015,” Mr Moore said. 

“Winter, usually a quiet period for property markets, was also pretty busy this year – we saw more new listings across winter this year than has been typical in recent years.”

A number of Aussies are planning to sell a home in the next six months – and half of them want to buy their next place first. Picture: Getty


Julia Bentley, market research and insights manager at REA Group, said the Seller Sentiment survey showed motivations have shifted on the back of rising rates and slipping prices.

“Last year, sellers were motivated by strong buyer demand and prices. This is still a motivating factor for 43% of the vendor market, but increasingly, sellers are looking to sell due to personal circumstances.”

The opportunity to upgrade their home, capitalising on both an increase in their equity and an easing of buyer competition when looking for their next, is also a strong factor.

“This is demonstrated by one-in-two sellers searching for their next home before selling their current one,” Ms Bentley said.

Despite some moderation, conditions for sellers remain strong. Picture: Getty


The research showed an increase in the number of sellers who think it’s not the best time to sell property, up to 39% in the June to July period, compared to 29% in the previous two-month period.

The result is consistent across the states but is higher in New South Wales (43%) and Victoria (44%) where home prices have slid the most in recent months.

“This had led many to delay their immediate plans, but over the next six months we’re likely to see sellers continue their activity in the market,” Ms Bentley said.

Mr Moore said selling conditions had tempered from “the very strong levels” seen earlier in the year but remained positive overall.

“Buyer demand is still much stronger than in 2019 and homes are selling quicker than they were pre-pandemic,” he pointed out. 

“And while prices are now falling in most places, they are up strongly compared to pre-pandemic levels, meaning many vendors will have significant equity.”

Market activity has risen sharply ahead of the traditionally busy spring selling season. Picture: Getty


Further, the Seller Sentiment survey found that of those planning to sell in the next six months, 41% are “highly confident” of achieving their price goals.

Ms Bentley said there had been an increase in the number of potential sellers who aren’t sure if it’s a good or bad time to sell.

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