Property owners across Australia are selling their properties at a higher rate compared to last year due to the impact of increasing interest rates and rising cost of living expenses. This has led some individuals to focus on reducing their debt levels or downsizing. In Perth, the market has been particularly active with new listings increasing by 4% from the previous year. CoreLogic research director Tim Lawless noted that vendor activity has been on the rise since the middle of last year, with households looking to derisk by lowering their debt, downsizing, or cashing out before falling behind on mortgage repayments. Additionally, owners who delayed selling during the recent downturn are now moving forward with their plans, leading to an increase in property listings.
The decision to sell properties is driven by a variety of factors, including the need to reduce debt, downsize, or cash out ahead of potential financial difficulties. Lawless pointed out that households are taking steps to protect themselves by reducing their debt levels, especially in response to the current economic challenges. With interest rates on the rise and cost of living pressures mounting, many property owners are opting to put their properties on the market to secure their financial future. This trend is not only observed in Perth but across Australia, with an increase in property listings compared to the previous year.
The increase in property listings is also attributed to a backlog of owners who postponed selling during the previous downturn in the market. Lawless mentioned that there is still a catch-up period from when vendors were inactive due to the challenging economic conditions. As the market conditions improve, these owners are now taking the opportunity to sell their properties and move forward with their plans. This backlog of sellers is contributing to the higher number of property listings seen in the current market, providing more options for potential buyers.
The surge in vendor activity is reflective of the changing dynamics in the property market, with owners adapting to the evolving economic landscape. Lawless noted that the increase in listings is a result of households taking proactive steps to safeguard their financial stability, whether by reducing debt, downsizing, or reallocating assets. With the uncertainty surrounding the economy and rising interest rates, property owners are making strategic decisions to protect their investments and avoid potential financial stress. By selling their properties now, owners are positioning themselves for greater financial security in the face of economic challenges.
As the property market continues to evolve, with interest rates rising and cost of living pressures mounting, property owners are responding by increasing their listing activity. The current trend of selling properties at a higher rate compared to the previous year is driven by a combination of factors, including the need to derisk, reduce debt, downsize, and cash out ahead of potential financial difficulties. The surge in vendor activity is also influenced by a backlog of owners who postponed selling during the downturn, leading to an increase in property listings across Australia. With the changing dynamics of the market, property owners are making strategic decisions to protect their financial well-being and adapt to the evolving economic landscape.
