Big rise in listings tipped as seller happiness hits record high

Vendor satisfaction has risen to an all-time high, sparking new expectations that a significant rise in the number of properties available for sale is set to occur.

RateMyAgent’s latest Price Expectation Report, which surveyed more than 51,500 Australians who sold a home between October and December, showed 51 per cent of sellers achieved the price they were looking for - up from 47 per cent at the same time in 2019.

Preliminary data for the first three months of 2021 shows vendor happiness has risen to 56 per cent, RateMyAgent said, which would be the highest overall satisfaction rate reported in the survey’s history.

Regional areas recorded slightly higher levels of satisfaction than major cities in the final quarter of 2020, at 52 per cent, compared to 50 per cent.

In Victoria’s Mallee region, a whopping 70 per cent of vendors reported they were satisfied with their sales price, an indication of the strong demand for regional properties that occurred throughout 2020.

Victorian locations made up four of the top 10 happiest areas in Australia, with the Mallee joined by Outer East Melbourne, the Central Highlands and Goldfields and Outer North Melbourne.

Hobart was Australia's second happiest city, with 67 per cent of vendors satisfied, while 66 per cent of sellers in Queensland's Richmond-Tweed region said they were happy with their sales prices.

On a state-by-state basis, the Australia Capital Territory overtook Tasmania as Australia’s happiest, with 66 per cent of vendors in the ACT reporting satisfaction, compared to 60 per cent in the Apple Isle. 

Conversely, seller satisfaction was lowest in Western Australia at 43 per cent, while 48 per cent of vendors in Queensland were happy with their sales price.

The satisfaction data follows CoreLogic reporting that Australia’s national median house price hit a record of $583,157 in January, with analysts predicting that all time high is likely to continue to rise.

RateMyAgent co-founder Mark Armstrong said the sales prices being achieved would drive a significant lift in the number of properties available for sale in the coming months.

“Looking ahead, we’re forecasting a 10 to 20 per cent increase in the number of properties entering the market for sale in 2021 – particularly in the second half of the year,” Mr Armstrong said.

“Our advice to Australians who are thinking of selling is to sell now. 

“The spring market will see a significant increase in the number of properties on the market and this will soften vendor happiness and prices. 

“For buyers, the second half of the year will see some fantastic opportunities.”

Listings data from Ray White, Australia’s biggest residential auctions house, showed a resurgence of sellers was already under way, with the group’s listings up 11 per cent on the same time last year and 15 per cent higher than the same time in 2018-19.

Mr Armstrong said the catalyst for 2021’s market growth was Australia’s historically-low interest rates, with the RBA recently stating it intended on keeping the official cash rate at 0.1 per cent for at least the next three years.

“In many cases, especially regional areas, it’s cheaper to buy than it is to rent,” Mr Armstrong said.

“In addition to this, buyers are ready - many Australians spent significantly less money in 2020 and shifted their focus to saving for a home loan.

“This low-interest environment, huge amount of supply and high buyer confidence is going to drive colossal growth in commission across the industry.”