Will the housing market keep going up? Agents say yes, they're booked out until July

The Easter break and the onset of miserable winter weather are unlikely to slow the incredible momentum sweeping Australia’s housing market, with some agents booked out for auctions into July as a flood of new listings is about to hit the market.

Coming into what is traditionally a quieter time of year for auctions, with a run of public holidays followed by the cooler months, agents are instead dubbing it a “second spring” and gearing up for mass auctions held not just on Saturdays but on Sundays, too, just to accommodate the huge numbers.

The latest Domain data shows new listings in every capital city are up. Over the month to March 14, listings jumped by 15.5 per cent in Sydney, 13.9 per cent in Brisbane and 9.1 per cent in Melbourne.

However, the biggest leaps were in Perth and Hobart, where listings soared by 39.5 per cent and 24.6 per cent, respectively. Darwin also rose by 9.4 per cent.

Domain senior research analyst Nicola Powell said the “unseasonably hot market” could continue for the next six months as a record number of new home loan commitments pointed to ongoing buyer demand.

“The most unusual thing for me about this market is that all capital cities have so much buyer demand at the same time,” Dr Powell said. “The recoveries in Perth and Darwin are usually unsynchronised with the rest of the country, but they’re now in sync.” 

The heat in the market is so extreme in some capital cities that auctioneers are working on Saturdays and Sundays to accommodate the number of properties going under the hammer.

“I usually do about four Sundays a year with overflow auctions,”  said auctioneer Ben Mitchell, of Sold By Auction. 

“I’ve already got six Sundays over the next six weeks [excluding Easter], and it’s not just one or two auctions; I’m talking full days.”

Mr Mitchell said he had auctions booked in up until July, a clear indication of the market continuing full steam ahead into winter.

It was a similar story in Melbourne, where appraisals and new listings are on the rise.

Barry Plant Victoria chief executive Mike McCarthy said that agencies across the city were receiving dozens of phone calls from potential vendors wanting an appraisal.

“Home owners are seeing what’s happening – that it’s so hot – they’re thinking now is a good time to sell,” Mr McCarthy said. 

While more homes were being listed, the large number of buyers meant they were being snapped up without pushing prices down, he said.

“People have saved a lot of money over the past 12 months, and they have more money to put towards a deposit or for a renovation of a property if they buy,” Mr McCarthy said. “I don’t think that’s going to change in the next few months; it should be strong through until [actual] spring.” 

In Hobart, where new listings are up almost 25 per cent over the past month, Lennard McClure Real Estate’s John Lennard said some open homes on the west coast were seeing more than 40 groups in just 45 minutes.

“Before it was one in and one out [for listings], but in the past two or three weeks we’ve felt things starting to change,” Mr Lennard said. “I think the general consensus now is this is one of the best markets we’ve ever seen.”

In Brisbane, where new listings have risen by nearly 14 per cent, buyer competition for properties is so fierce it was putting off some home owners from listing at all.

McGrath Paddington’s Alex Jordan said supply could be stronger, particularly in the affluent areas, but potential sellers were worried about the unprecedented environment they would be buying back into.

Brisbane had to contend with more competition than other states, he said, as an influx of interstate and expatriate buyers meant homes were being snapped up quickly and for higher prices.

“It’s beyond a typical spring,” Mr Jordan said. “In all my years in real estate, I’ve never seen such a strong market.”

Vendors selling via auction, rather than private treaty, had spiked in the past couple of months, Mr Jordan said, as Brisbane home owners realised their opportunity to capitalise on the frenzied market conditions.