Property prices may be hitting new highs but most would-be sellers aren’t cashing in and are instead holding off listing out of fear they’ll struggle to buy their next home.
Over half of those polled in a recent Westpac survey of homeowners who were “ready to sell” said they wouldn’t pull the trigger on a listing because buyer competition was too stiff to move somewhere else.
It’s led to a crippling shortage of available housing and a “vicious cycle” where homeowners’ decisions to delay selling are making the market even hotter.
This in turn is further discouraging new sales.
Would-be sellers were upgraders who wanted to buy their next home before they listed.
This was channelling new buyers into the market without the same match in new listings and current stock shortages were “severe” in most areas.
“When they see that, they just know it’s going to get blown out the water,”
The Westpac commissioned research conducted by Lonergan Research also revealed many buyers were chasing the same type of homes.
The majority were seeking more space, with 94 per cent of those surveyed wanting a backyard, alfresco entertaining area, veranda or some form of outdoor space.
Close to half said “quiet surroundings” were their top priority when considering property.
The current appetite for houses with backyards was “ferocious”.
“Everyone wants the same thing,”It’s been difficult to keep up with the level of inquiry. The phones just never stop ringing.”