Large portion of Australian homeowners are planning to sell in near future
Yes, the Australian property market is currently experiencing a boom. In June, successful sales increased 18% from the previous year. So, it is not surprising that so many Australian homeowners are considering taking advantage of the high housing prices and putting their homes up for sale.
According to Westpac research, four in ten (39%) Aussie homeowners are planning to sell in the next five years, increasing 9% since November 2020.
Why sell your house right now?
Westpac managing director of mortgages, Anthony Hughes said that this increase in sales interest is being driven by confidence in getting a good return, as well as an increasing desire to live in a new area as people seek more living space.
Many of those considering putting their properties on the market are looking to find larger homes away from big capital cities . Westpac data showed that houses are most in-demand.
“Properties further from the city boasting backyards and a more relaxed lifestyle remain top of mind for buyers, and for the first time, more homeowners are telling us increased infrastructure and amenities in their desired area is also motivating them to sell, with public transport, local shops and parks ranking as the most desirable suburban features,” said Hughes.
In contrast, a quarter of those looking to sell are planning on downsizing, an increase on last year.
“Apartments still remain a popular option – particularly among younger buyers who are more likely to seek the convenience and access to local cafes, restaurants, and bars, as well as downsizers who might be seeking a coastal lifestyle.”
What about first-time buyers?
Although Australians who already have their foot on the property ladder are looking to sell and buy, the research also found a decrease in the number of people planning to buy a first home.
This aligns with the Australian Bureau of Statistics (ABS) lending indicator report for March and April of this year, which showed a 5% drop in first-time buyers participating in the market.
According to Westpac, the top reasons listed for first-time buyers not jumping into the market right now are:
- 43 cited too competitive of a market
- 29% cited lack of listed options
“Our research shows that while buying intentions have tapered slightly, demand still remains stronger than it did prior to the pandemic, reinforcing that the great Aussie dream of owning a home continues to remain a priority,” said Hughes
If you are a first-time buyer hoping to get your foot in the door or a homeowner looking to make the big move from the city to the country or coast, start making plans and check out Mozo’s home loan hub .