More Australians consider selling their home in red hot market

SYDNEY (Bloomberg): More than a third of Australian homeowners are planning to sell in the next five years, according to a report by Westpac Banking Corp., as they look to cash in on a booming market driven by low mortgage rates and an improving economy.

The report showed 35% of households surveyed were considering selling, more than double the amount seen prior to the pandemic.

More than one in ten were already in the process of putting their property on the market, or planning to do so in the next twelve months.

“It is absolutely a seller’s market at the moment,” Matt Hassan, a senior economist at Westpac, said in a media release.

“The research suggests the situation will rebalance in coming months as more sellers come onto the market, however demand is still expected to remain strong, driving a sustained lift in prices this year and next.”

Australia’s housing market in February posted its biggest monthly price gain in 17 years, dispelling fears of a Covid-induced downturn.

Economists think the gains can continue: Goldman Sachs Group Inc. said Friday that prices will rise 10% this year, fueled by low interest rates and improved sentiment, although the bank also noted there are risks ahead including a potentially more hawkish Reserve Bank.

The Westpac report also pointed to lingering caution, with 51% of respondents saying they’re actively holding off from listing their property straight away, while 66% said high moving costs were a big barrier to selling.